Course Overview

Social networks provide opportunities for individuals in spreading information, such as the experience sharing of a new product. They facilitate the borrowing and lending, such as the emergence of microfinance. They also influence the collective actions, as we may influence our friends' political inclinations as well as their voting behaviors. While the social network portrays the delineation of the relationship between individuals, this course provides an overview on current economic research that intends to understand the interaction between social networks and economic behaviors. This course is theory-based and self-contained. The students are strongly encouraged to acknowledge game theory.

Learning Achievement

This course aims at undergraduate and graduate students and to provide an overview on game-theoretic social networks in the disciplines of economics. We will learn the basic tools in analyzing the interaction between social networks and economic behavior. The topics will cover social learning, local public good, collective actions, and network formation.

Competence

Course prerequisites

Grading: 1. Student presentation (30%) 2. Attendance (a 4-day absence allowance is given) (10%) 3. Participation in the session of student presentation, including 1-page introduction and preparation for receiving cold call during the presentation (20%) 4. Midterm project proposal and Final-term paper (40%) Course outline (Course Schedule of 18 weeks) Week 1: Introduction Week 2: No Class ? Peace Memorial Day Week 3: Games on networks Ch.3 of (C) Bramoulle, Y. and R. Kranton 2007, Local Public Goods in Networks, Journal of Economic Theory Week 4: Coordination game Ch.4 of (C) Week 5: Social Learning Ch.5 of (C) Bala, V. and S. Goyal 1998, learning from neighbors, The Review of Economic Studies Week 6: Labor Market Ch.6 of (C) Calvu-Armengol, A. and M.O. Jackson 2004, The Effects of Social Networks on Employment and Inequality, American Economic Review Week 7: No Class ? Tomb Sweeping Day Week 8: Network formation Ch.7 of (C) Ch.5 of (SEN) Week 9: Student Project Proposal Week 10: Student Presentation Chatterjee, Kalyan and B. Dutta 2016, Credibility and Strategic Learning in Networks, International Economic Review Babus, Ana and T. Hu forthcoming, Endogenous Intermediation in OTC market, Journal of Financial Economics Week 11: Student Presentation Dutta, B., S. Ghosal, and D. Ray 2005, Farsighted Network Formation, Journal of Economic Theory Bloch, F. and M.O. Jackson 2003, The Formation of Networks with Transfers among Players, Journal of Economic Theory Week 12: Student Presentation Gale, D. and S. Kariv 2003, Bayesian Learning in Social Networks, Games and Eco- nomic Behavior Golub, B., and M.O. Jackson 2010, Nave Learning in Social Networks and the Wisdom of Crowds, American Economic Journal: Microeconomics Week 13: Student Presentation Elliott, M., B. Golub, and M.O. Jackson 2014, Financial Networks and Contagion, American Economic Review Calvu-Armengol, A. 2004, Job Contact Networks, Journal of Economic Theory Week 14: Student Presentation Hagg, M. and R. Lagunoff 2006, Social Norms, Local Interaction, and Neighborhood Planning, International Economic Review Chwe, M. 2000, Communication and Coordination in Social Networks, The Review of Economic Studies Week 15: No Class ? Dragon Boat Festival Week 16: Student Presentation Ballester, A. Calvu-Armengol, and Y. Zenou 2006, Who is Who in Networks: Wanted the Key Player, Econometrica Galeotti, A., S. Goyal, M.O. Jackson, F. Vega-Redondo, L. Yariv, 2010, Network Games, The Review of Economic Studies Week 17: TBA Week 18: Final No Class

Grading Philosophy

Course schedule

Course type

Online Course Requirement

Instructor

Chun-Ting Chen

Other information

(College of Social Sciences) Department of Economics,
(College of Social Sciences) Graduate Institute of Economics
*Registration eligibility: juniors and above, and graduate students.

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