Programme

In this module, we will study the implications of interventions within a network. Over the past two decades, research has clarified the empirical structure of networks and how this shapes individual behaviour and collective outcomes. Given the widespread externalities inherent in many contexts, a natural next step is to examine ways in which a government or a firm can intervene in a network in pursuit of its goals. Inequality is another well-established feature of prominent economic networks.

We will analyse models of network formation that can account for inequality in connections, which give rise to social influence and disparities in payoffs. The presentation of formal models will be accompanied by a discussion of the related empirical evidence. In particular, we will refer to recent experimental studies that highlight new findings on learning rules and on the salience of unequal networks. By the end of this module, students should be familiar with the structure of the most important models of economic networks and able to assess their predictions in different empirical settings.

In this module, we will discuss how social networks play an important role in facilitating social and economic interactions in communities in developing countries. A key difference in the economic landscape between rich and poor countries is that many developing countries lack formal institutions such as insurance and government safety nets. Social networks play a crucial role in filling in - albeit imperfectly – these gaps.

We will start by discussing how the broader literature on social learning and diffusion applies to developing country contexts. We will then focus on two key sectors: agriculture and credit/savings. This module will emphasize the interplay between theory and empirics, particularly experimental approaches. We will also discuss measurement challenges and recent innovations in generating social network data in developing country contexts. By the end of this module, students should be able to identify important economic questions related to social networks in developing countries and generate experimental approaches to answer them.