The Institute for New Economic Thinking has recently released an interview where Prof. Sanjeev Goyal explains his general theory of network formation based on individual incentives, and their economic implications. Among other things, they discuss about the consequences of living in a world with “six degrees of separation“, the so called “wisdom of the crowds”  and the importance of understanding financial networks and their associated systemic risks. It is undoubtedly an inspiring interview where very complex and important ideas are explained in plain English. Enjoy!