Risk aversion and social networks

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F14%3A00445236" target="_blank" >RIV/67985998:_____/14:00445236 - isvavai.cz</a>

Výsledek na webu

<a href="http://dx.doi.org/10.1515/rne-2014-0029" target="_blank" >http://dx.doi.org/10.1515/rne-2014-0029</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1515/rne-2014-0029" target="_blank" >10.1515/rne-2014-0029</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Risk aversion and social networks

Popis výsledku v původním jazyce

This paper first investigates empirically the relationship between risk aversion and social network structure in a large group of undergraduate students. We find that risk aversion is strongly correlated to local network clustering, that is, the probability that one has a social tie to friends of friends. We then propose a network formation model that generates this empirical finding, suggesting that locally superior information on benefits makes it more attractive for risk averse individuals to link tofriends of friends. Finally, we discuss implications of this model. The model generates a positive correlation between local network clustering and benefits, even if benefits are distributed independently ex ante. This provides an alternative explanation of this relationship to the one given by the social capital literature. We also establish a linkage between the uncertainty of the environment and the network structure: risky environments generate more clustered and more unequal networ

Název v anglickém jazyce

Risk aversion and social networks

Popis výsledku anglicky

This paper first investigates empirically the relationship between risk aversion and social network structure in a large group of undergraduate students. We find that risk aversion is strongly correlated to local network clustering, that is, the probability that one has a social tie to friends of friends. We then propose a network formation model that generates this empirical finding, suggesting that locally superior information on benefits makes it more attractive for risk averse individuals to link tofriends of friends. Finally, we discuss implications of this model. The model generates a positive correlation between local network clustering and benefits, even if benefits are distributed independently ex ante. This provides an alternative explanation of this relationship to the one given by the social capital literature. We also establish a linkage between the uncertainty of the environment and the network structure: risky environments generate more clustered and more unequal networ

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

—

Projekt

<a href="/cs/project/GA14-22044S" target="_blank" >GA14-22044S: Učení a sítě</a><br>

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2014

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Review of Network Economics

ISSN

2194-5993

e-ISSN

—

Svazek periodika

13

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

DE - Spolková republika Německo

Počet stran výsledku

35

Strana od-do

121-155

Kód UT WoS článku

000350736500001

EID výsledku v databázi Scopus

2-s2.0-84925450018