We are happy to announce that two papers from our team member Sanjeev Goyal have been recently accepted for publication! The article ‘Networks, Markets and Inequality‘ (written in collaboration with Julien Gagnon) will soon appear in the American Economic Review. In this paper, the authors study the ‘economic mechanisms that can account for the empirical patterns found on the interaction between community and markets‘. To that end, they ‘develop a model where individuals in a social network choose whether to participate in their network and whether to participate in the market‘. With this model they are able to study under what conditions ‘do markets strengthen social ties, when they undermine them and also the impact they have on inequality and welfare‘.
Yet another article : ‘Trading in Networks: Theory and Experiments‘ (in collaboration with Syngjoo Choi and Andrea Galeotti), will be published in the Journal of European Economic Association. Here the authors propose a ‘model of posted prices in networks, allowing for the study of pricing in complex structures of intermediation‘. They also ‘provide a complete characterization of equilibrium prices’ and complement their theoretical work with actual experiments.