ABSTRACT: In this paper, we propose a model of the marriage market in which individuals meet potential partners either directly or through their friends. When socialization is exogenous, a higher arrival rate of direct meetings also implies more meetings through friends. When individuals decide how much to invest in socialization, meetings through friends are first increasing and then decreasing in the arrival rate of direct offers. Hence, our model can rationalize the negative correlation between the advent of online dating and the decrease of marriages through friends observed in the US over the past decades.
- Polarization when people choose their peers (latest 2020, first 2016) – joint with Paolo Pin – SSRN link
ABSTRACT: Processes of polarization have been documented in several applications. Yet most existing theories focus on how herding behavior and convergence of opinions tend to occur in different contexts. In this paper, we develop a model where agents correct their heterogeneous initial opinion by averaging the opinions of their neighbors. Our key contribution is to let the network arise endogenously. To do so, we micro–found how individuals optimally choose reference groups and we characterize a dynamic process where the network evolves along with individual opinions. Results show that there are always conditions on the strength of social influence preventing the network from being connected. This causes polarization in the long run. However, polarization can also arise during the transition to a consensus. We show how each of these cases is tied to a key network statistic, the initial diameter.
Work in progress:
- Consumer Theory with Social effects (2017) – joint with Yann Bramoulle`
- Marriage with frictions: a revealed preference analysis – (2021) – joint with Cherchye, L. Demuynck, T. De Rock, B. and Merlino, L.P. – Working paper available soon