A Framework For The Study of Individual Behavior and Social Interactions

Abstract

Recent work in economics has begun to integrate sociological ideas into the modeling of individual behavior. In particular, this new approach emphasizes how social context and social interdependences influence the ways in which individuals make choices. This paper provides an overview of an approach to integrating theoretical and empirical analysis of such environments. The analysis is based on a framework due to Brock and Durlauf (2001, forthcoming). Empirical evidence on behalf of this perspective is assessed and some policy implications are explored.

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