Economics of Networks

Many economic interactions are embedded in a network of social and economic relationships, shaping economic behavior and outcomes. This course covers economic models that have an explicit role for social and economic networks and social interactions in explaining economic behavior..

The course consists of three parts.

• Part 1 (Weeks 1 and 2) provides a toolbox of theoretical concepts and modelling techniques. In this first part of the course we will work with a flipped classroom concept. This implies that we will ask you to watch parts of the massive open online lectures (MOOC) "Social and Economic Networks" of Matthew Jackson, Stanford University, in preparation of these meetings. This allows us to use the classroom sessions entirely for training purposes. During our live class sessions, we will summarize the findings, address your problems and discuss exercises.
• Part 2 (Weeks 3 and 4) provide an introduction to the statistical and econometric analysis of networks. We will discuss the empirical background of networks and their regularities, and introduce modern econometric tools to analyze them. The goal is to help students to understand outcomes and behaviors in networked societies, and to be able to evaluate real world policy instruments in this context. In preparation for these meetings, we will ask you to watch clips made available on canvas.
• Part 3 (from week 5 on) consists of student presentations and discussions of academic articles. These articles on social and economic networks will be tailored to the student's interest. We provide a reading list of selected papers as a guideline. However, you are welcome to suggest a paper yourself or ask us for advice.