American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Social Clubs and Social Networks
American Economic Journal: Microeconomics
vol. 13,
no. 1, February 2021
(pp. 224–51)
Abstract
We present a strategic network formation model based on membership in clubs. Individuals choose affiliations. The set of all memberships induces a weighted network where two individuals are directly connected if they share a club. Two individuals may also be indirectly connected using multiple memberships of third parties. Individuals gain from their position in the induced network and pay membership fees. We study the club congestion model where the weight of a link decreases with the size of the smallest shared club. A trade-off emerges between the size of clubs, the depreciation of indirect connections, and the membership fee.Citation
Fershtman, Chaim, and Dotan Persitz. 2021. "Social Clubs and Social Networks." American Economic Journal: Microeconomics, 13 (1): 224–51. DOI: 10.1257/mic.20180143Additional Materials
JEL Classification
- D71 Social Choice; Clubs; Committees; Associations
- D85 Network Formation and Analysis: Theory
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
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