Markets, Social Networks, and Endogenous Preferences



Year of publication 2012
Type Article in Proceedings
Conference Proceedings of 30th International Conference Mathematical Methods in Economics
MU Faculty or unit

Faculty of Economics and Administration

Web Paper and model's web interface
Field Economy
Keywords endogenous preferences; market; social network; agent-based simulation
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Description This paper generalizes the Bell’s model (“Locally interdependent preferences in a general equilibrium environment,” JEBO, 2002), and models an interaction between a market, endogenous preferences, and a general social network. Contrary to Bell’s results, 1) the system need not to converge, 2) the agents’ preferences need not to be polarized, 3) the agents’ preferences need not to adjust in the proportion to the availability (only the more abundant good can be consumed in one type of equilibrium), and 4) the agents with the same preferences need not to be clustered.
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