Matthew O. Jackson

William D. Eberle Professor of Economics

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A Book on Networks

Here is the table of contents and the introductory chapter.

Here are the Princeton University Press and Amazon pages for the book.

Here are links to some reviews of the book:

If you are teaching a course using the book and would like access to solutions to some of the exercises, please email me (instructors only please!).

Here is a list of typos and clarifications.

Books Edited

The Handbook of Social Economics Editors: Jess Benhabib, Alberto Bisin, Matthew O. Jackson, North Holland 2011.

Foundations in Microeconomic Theory: A Volume in Honor of Hugo F. Sonnenschein, edited by Matthew O. Jackson and Andrew McLennan, 2008 Springer: Heidelberg, ISBN: 978-3-540-74056-8.

Networks and Groups: Models of Strategic Formation edited by Bhaskar Dutta and Matthew O. Jackson, 2003 Springer: Heidelberg ISBN: 978-3-540-43113-8.

Published and Forthcoming Papers - References and Links (in reverse chronological order)

If you do not have access to a journal and would like a reprint of a published paper for your own reading, please email me at jacksonm@stanford.edu .

``Social Capital and Social Quilts: Network Patterns of Favor Exchange'' with Tomas Rodriguez-Barraquer and Xu Tan, Forthcoming: American Economic Review .
There is also a supplementary appendix and related data.
``Disclosure of Information, Deliberation, and Voting,'' with Xu Tan, Forthcoming: Journal of Economic Theory.
``Homophily and Long-Run Integration in Social Networks,'' with Yann Bramoulle, Sergio Currarini, Paolo Pin, and Brian Rogers. Forthcoming: Journal of Economic Theory.
``How Homophily Affects the Speed of Learning and Best Response Dynamics'' with Benjamin Golub, Forthcoming: Quarterly Journal of Economics.
``Network Structure and the Speed of Learning: Measuring Homophily Based on its Consequences'' with Benjamin Golub, Forthcoming in the Annals of Economics and Statistics .
``Does Homophily Predict Consensus Times? Testing a Model of Network Structure via a Dynamic Process'' with Benjamin Golub, Forthcoming in the Review of Network Economics .
``Epsilon-Equilibria of Perturbed Games,'' with Tomas Rodriguez-Barraquer and Xu Tan, in Games and Economic Behavior, Vol 75, No 1, pp 198-216, May 2012.
``The Reasons for Wars - an Updated Survey,'' with Massimo Morelli, in the Handbook on the Political Economy of War edited by Chris Coyne and Rachel Mathers, Elgar Publishing, 2011.
``An Overview of Social Networks and Economic Applications,'' in the The Handbook of Social Economics, edited by J. Benhabib, A. Bisin, and M.O. Jackson, North Holland 2011.
``Diffusion, Strategic Interaction, and Social Structure,'' with Leeat Yariv, in the Handbook of Social Economics (edited by Benhabib, Bisin, Jackson), North Holland 2011.
``Research Opportunities in the Study of Social and Economic Networks'' A white-paper I wrote for the NSF: September 2010.
``Social Games: Matching and the Play of Finitely Repeated Games,'' with Alison Watts, in Games and Economic Behavior, Vol. 70, Iss. 1, pp 170 - 191, September 2010.
``Using selection bias to explain the observed structure of Internet diffusions,'' with Benjamin Golub, in the Proceedings of the National Academy of Sciences. 107(24): 10833 - 10836, June 15, 2010. There is also some Supplemental information.
``Identifying the roles of race-based choice and chance in high school friendship network formation,'' with Sergio Currarini and Paolo Pin. in the Proceedings of the National Academy of Sciences. 107(11): 4857–4861, March 16, 2010.
There is also some Supplemental information and related data
``Naive Learning in Social Networks: Convergence, Influence and the Wisdom of Crowds,'' with Benjamin Golub, in the American Economic Journal: Microeconomics 2(1): 112–49, Feb. 2010.
``Peer Pressure,'' with Antoni Calvo-Armengol, in the Journal of the European Economic Association Vol. 8, No. 1, pp 62–89, Jan. 2010.
``Network Games,'' with Andrea Galeotti, Sanjeev Goyal, Fernando Vega-Redondo, and Leeat Yariv, in the Review of Economic Studies Vol. 77: No. 1, pp 218-244, Jan. 2010.
``Strategic Militarization, Deterrence and War between Nations,'' with Massimo Morelli, in the Quarterly Journal of Political Science Vol. 4, Iss. 3, 279-313, 2009
``An Economic Model of Friendship: Homophily, Minorities and Segregation,'' with Sergio Currarini and Paolo Pin, in Econometrica Vol. 77, No. 4, 1003–1045, July 2009.
Here are the supplementary material and related data
``Identifying Community Structures from Network Data,'' with Jernej Copic and Alan Kirman, in the B.E. Press Journal of Theoretical Economics Vol. 9 : Iss. 1 (Contributions), Article 30, 2009. DOI: 10.2202/1935-1704.1523.
There are supporting files containing the data and implementation of the algorithms.
``Vote Buying: Legislatures and Lobbying,'' with Eddie Dekel and Asher Wolinsky, Quarterly Journal of Political Science. Volume 4, Issue 2, 103-128, July 2009.
``Nonexistence of Equilibria in Auctions with both Private and Common Values'' in the Review of Economic Design, Vol. 13, No. 1/2, 137-145, April, 2009.
``Do We Inherit Our Positions in Life? Genetic Influences on Social Network Characteristics.'' A commentary in the Proceedings of the National Academy of Sciences Vol. 106, No. 6, 1687-1688, Feb. 10, 2009.
``Like Father, Like Son: Network Externalities, Parent-Child Correlation in Behavior, and Social Mobility,'' with Toni Calvo-Armengol, in the American Economic Journal: MicroeconomicsVol. 1, No. 1, 124-150, 2009.
Here is some supplementary material.
``The Role of Responsibility in Strategic Risk-taking,'' with Gary Charness, in The Journal of Economic Behavior and Organization Vol. 69, 241-247, 2009.
``Networks and Economic Behavior,'' in the The Annual Review of Economics, Vol. 1, pages 489-513, January 2009.
``Average Distance, Diameter, and Clustering in Social Networks with Homophily,'' arXiv:0810.2603v1 [physics.soc-ph], in the Proceedings of the Workshop in Internet and Network Economics (WINE 2008), Lecture Notes in Computer Science edited by C. Papadimitriou and S. Zhang, Springer-Verlag, Berlin Heidelberg, 2008.
``Vote Buying: General Elections,'' with Eddie Dekel and Asher Wolinsky, in the Journal of Political Economy Vol. 116, No. 2: 351-380, 2008.
``Network Formation,'' in The New Palgrave Dictionary of Economics and the Law , MacMillan Press, 2008.
`` A Categorical Model of Cognition and Biased Decision-Making,'' with Roland Fryer, The B.E. Press Journal of Theoretical Economics Vol. 8 : Iss. 1 (Contributions), Article 6, 2008. Note: in Example 4, object 3 is listed as (0,1,0,0) while it should be (1,1,0,0).
``Equilibrium Existence in Bipartite Social Games: A Generalization of Stable Matchings,'' with Alison Watts, Economics Bulletin, Vol. 3, No. 12, pp. 1-8, 2008.
``Social Structure, Segregation, and Economic Behavior,'' presented as the Nancy Schwartz Memorial Lecture 2007
``War, Transfers, and Political Bias,'' with Massimo Morelli, American Economic Review, Vol. 97, No. 4, pp 1353-1373, 2007.
`` Envy-Freeness and Implementation in Large Economies,'' with Ilan Kremer, The Review of Economic Design, Vol. 11, No. 3, pp. 185-198, 2007.
``Group Play in Games and the Role of Consent in Network Formation,'' with Gary Charness, Journal of Economic Theory. Vol. 136, No. 1, pp. 417-445, 2007.
``The Study of Social Networks In Economics,'' in The Missing Links: Formation and Decay of Economic Networks, edited by James E. Rauch, Russel Sage Foundation: New York, 2007.
``Meeting Strangers and Friends of Friends: How Random are Socially Generated Networks?'' with Brian W. Rogers, American Economic Review, Vol. 97, No. 3, pp 890-915, June 2007.
There are related code and data
``Diffusion of Behavior and Equilibrium Properties in Network Games,'' with Leeat Yariv, American Economic Review (Papers and Proceedings), Vol 97, No. 2, pp 92-98, 2007. (typo in the proof of Proposition 7: insert ``sum tilde P(d)'' before ``partial of H'')
Here is a longer version of the paper, with added detail.
``Nomination Processes and Policy Outcomes,'' with Laurent Mathevet and Kyle Mattes, Quarterly Journal of Political Science, Vol. 2, Iss. 1, pp. 67-94, 2007.
``The Formation of Networks with Transfers among Players,'' with Francis Bloch, Journal of Economic Theory, Vol. 133, No. 1, pp. 83-110, 2007.
``Relating Network Structure to Diffusion Properties through Stochastic Dominance'' with Brian Rogers, The B.E. Press Journal of Theoretical Economics (Advances), Vol. 7, No. 1, Art. 6, pp. 1-13, 2007 (Winner of the 2007 Arrow Prize for Senior Economists).
``Overcoming Incentive Constraints by Linking Decisions,'' with Hugo F. Sonnenschein, in Econometrica, Vol. 75, No. 1, pp. 241-258, 2007.
Here is an extended version of the paper, with added examples and detail.
``Networks in Labor Markets: Wage and Employment Dynamics and Inequality,'' with Toni Calvo-Armengol, in The Journal of Economic Theory, Vol. 132, No. 1, pp 27-46, 2007.
Here is some related code
``On the Informational Inefficiency of Discriminatory Price Auctions,'' with Ilan Kremer, Journal of Economic Theory, Vol. 132, No. 1, pp 507-517, 2007.
``Social Networks and the Diffusion of Behavior,'' with Leeat Yariv, Yale Economic Review, Vol. 3, Iss. 2, pp 42-47, 2006.
``Definitions of Equilibrium in Network Formation Games,'' with Francis Bloch, International Journal of Game Theory, Vol. 34, No. 3, pp 305-318, 2006.
``The Relevance of a Choice of Auction Format in a Competitive Environment,'' with Ilan Kremer, The Review of Economic Studies, Vol 73, No 4, pp 941-960, 2006.
``The Economics of Social Networks,'' Chapter 1 in Volume I of: Advances in Economics and Econometrics, Theory and Applications: Ninth World Congress of the Econometric Society, edited by Richard Blundell, Whitney Newey, and Torsten Persson, Cambridge University Press, 2006.
``On the Weights of Nations: Assigning Voting Power to Heterogeneous Voters,'' with Salvador Barbera, Journal of Political Economy, Vol 114, No. 2, pp 317-339, 2006.
``Diffusion on Social Networks,'' with Leeat Yariv, Economie Publique Numero 16, pp 3-16, 2005/1.
``The Economics of Small Worlds,'' with Brian Rogers, The Journal of the European Economic Association (papers and proceedings), 3(2-3): 617-627, 2005.
``Strongly Stable Networks,'' with Anne van den Nouweland, Games and Economic Behavior, Vol. 51, 420-444, 2005.
``Endogenous Games and Mechanisms: Side Payments among Players,'' with Simon Wilkie, Review of Economic Studies. Volume 72, Issue 2, April 2005, pages 543-566. There is an error in Theorem 5 and an erratum: Erratum
``Allocation Rules for Network Games,'' Games and Economic Behavior, Volume 51, Issue 1, April 2005, Pages 128-154.
``Existence of Equilibria in Single and Double Auctions,'' with Jeroen Swinkels, Econometrica, Vol. 73, No. 1, 93-139, 2005.
``The Banks Set and the Uncovered Set in Budget Allocation Problems,'' with Bhaskar Dutta and Michel Le Breton, in a Volume in Memory of Jeffrey Banks, edited by David Austen-Smith and John Duggan, Springer Verlag: Heidelberg, 2005.
``Choosing How to Choose: Self-Stable Majority Rules and Constitutions,'' with Salvador Barbera, Quarterly Journal of Economics, Vol. 119, No. 3, pp 1011-1048, 2004.
``The Effects of Social Networks on Employment and Inequality,'' with Toni Calvo-Armengol, American Economic Review, vol. 94, no. 3, 426-454, June 2004.
Here are related code and data
``A Survey of Models of Network Formation: Stability and Efficiency,'' Chapter 1 in Group Formation in Economics; Networks, Clubs and Coalitions , edited by Gabrielle Demange and Myrna Wooders, Cambridge University Press, Cambridge U.K., 2004.
``Equilibrium Agenda Formation,'' with Bhaskar Dutta and Michel Le Breton, Social Choice and Welfare, Vol. 23, pp 21-57, 2004.
``The Relationship between the Allocation of Goods and a Seller's Revenue,'' with Ilan Kremer, Journal of Mathematical Economics, Vol. 40, pp 371-392, 2004.
``Strategy-Proof Provision of Public Goods under Congestion and Crowding Preferences,'' with Antonio Nicolo, Journal of Economic Theory, vol. 115, no. 2, pp 278-308, 2004.
``La Crema: Fire Insurance in a Village Economy of Modern Day Europe,'' with Antonio Cabrales and Antoni Calvo-Armengol, Journal of Political Economy, vol. 111, no. 2, pp 425-458, 2003.
``Efficiency and Information Aggregation in Auctions with Costly Information,'' Review of Economic Design, vol. 8, no. 2, pp 121-141, 2003.
``On the Formation of Networks and Groups,'' with Bhaskar Dutta, in Networks and Groups: Models of Strategic Formation, edited by Bhaskar Dutta and Matthew O. Jackson, Springer--Verlag, Heidelberg 2003.
``The Stability and Efficiency of Economic and Social Networks,'' in Advances in Economic Design, edited by Murat Sertel and Semih Koray, Springer-Verlag, Heidelberg 2003; reprinted in Networks and Groups: Models of Strategic Formation, edited by Bhaskar Dutta and Matthew O. Jackson, Springer--Verlag, Heidelberg 2003.
``Mechanism Theory,'' in Optimization and Operations Research, edited by Ulrich Derigs, in the Encyclopedia of Life Support Systems, EOLSS Publishers: Oxford UK,[http://www.eolss.net], 2003.
``The Evolution of Social And Economic Networks,'' with Alison Watts, Journal of Economic Theory, vol. 106, no. 2, pp 265-295, 2002.
``On the Formation of Interaction Networks in Social Coordination Games,'' with Alison Watts, Games and Economic Behavior, vol. 41, no. 2, pp 265-291, 2002.
``Communication and Equilibrium in Discontinuous Games of Incomplete Information,'' with Leo K. Simon, Jeroen M. Swinkels, and William R. Zame, Econometrica, vol. 70, no. 5, pp 1711-1740, 2002; corrigendum
``Asymptot ic Revenue Equivalence in Auctions,'' with Valentina Bali, Journal of Economic Theory, Vol. 106, no.1, pp 161-176. 2002.
``The Stability of Hedonic Coalition Structures,'' with Anna Bogomolnaia, Games and Economic Behavior, Vol. 38, No. 2, 2002, pp 201-230.
``Voting by Successive Elimination and Strategic Candidacy,'' with Bhaskar Dutta and Michel Le Breton, Journal of Economic Theory, Vol. 103, No. 1, 2002, pp 190-218.
``Coalitio n and Party Formation in a Legislative Voting Game,'' with Boaz Moselle, Journal of Economic Theory, Vol. 103, No. 1, 2002, pp 49-87.
``The Existence of Pairwise Stable Networks,'' with Alison Watts, Seoul Journal of Economics, vol. 14, no. 3, pp 299-321, 2001.
``A Crash Course in Implementation Theory,'' Social Choice and Welfare, Vol. 18, No. 4, 2001, pp 655-708.
``Strategic Candidacy and Voting Rules,'' with Bhaskar Dutta and Michel Le Breton, Econometrica, Vol. 69, No. 4, 2001, pp 1013--1038.
``Voluntary Implementation,'' with Tom Palfrey, Journal of Economic Theory, Vol. 98, No. 1, 2001, pp 1--25; corrigendum
``The Stability and Efficiency of Directed Communication Networks,'' with Bhaskar Dutta, Review of Economic Design, Vol. 5, No. 3, 2000, pp 251--272, reprinted in Networks and Groups: Models of Strategic Formation, edited by Dutta and Jackson, Springer--Verlag, Heidelberg 2003.
``Reputation versus Social Learning,'' with Ehud Kalai, Journal of Economic Theory, Vol. 88, No. 1, 1999, pp 40-59.
``The Optimal Design of a Market,'' with Sandro Brusco, Journal of Economic Theory, Vol. 88, No. 1, 1999, pp 1-39.
``Bayesian Representation of Stochastic Processes under Learning: de Finetti Revisited,'' with Ehud Kalai and Rann Smorodinsky, Econometrica, Vol. 67, No. 4, 1999, pp 875- 894.
``Asymmetric Information in a Competitive Market Game: Reexamining the Implications of Rational Expectations,'' with Jim Peck, Economic Theory, Vol. 13, No. 3, 1999, pp 603-628.
``Efficiency and Voluntary Implementation in Markets with Repeated Pairwise Bargaining,'' with Tom Palfrey, Econometrica, Vol. 66,No. 6, 1998, pp 1353-1388.
``Bid--Ask Spreads with Indirect Competition Among Specialists,'' with Thomas Gehrig, Journal of Financial Markets, Vol. 1, No. 1, 1998, pp 89-119.
``Social Learning in Recurring Games,'' with Ehud Kalai, Games and Economic Behavior, Vol. 21, No. 1/2, 1997, pp 102-134, reprinted in Social Organization and Mechanism Design, edited by C. d'Aspremont, Francqui Foundation, 1998.
``Approximately Competitive Equilibria in Large Economies,'' with Alejandro Manelli, Journal of Economic Theory, Vol. 77, No. 2, 1997, pp 354-376.
``Strategy --Proof Allotment Rules,'' with Salvador Barbera and Alejandro Neme, Games and Economic Behavior, Vol. 18, No. 1, 1997, pp. 1-21.
``Recurring Bullies, Trembling, and Learning,'' with Ehud Kalai, in Understanding Strategic Interaction: Essays in Honor of Reinhard Selten, edited by Albers et al, Springer-Verlag, 1997.
``A Strategic Model of Social and Economic Networks,'' with Asher Wolinsky, Journal of Economic Theory, Vol. 71, No. 1, 1996, pp 44--74, reprinted in Networks and Groups: Models of Strategic Formation, edited by Dutta and Jackson, Springer--Verlag, Heidelberg 2003.
``Characterizations of Game Theoretic Solution Concepts which Lead to Impossibility Theorems,'' with Sanjay Srivastava, Review of Economic Studies, Vol. 63, No. 1, 1996, 23-38.
``Strategy--Proof Exchange,'' with Salvador Barbera, Econometrica, Vol. 63, No. 1, 1995, pp 51-- 88.
``A Characterization of Strategy--Proof Social Choice Functions for Economies with Pure Public Goods,'' with Salvador Barbera, Social Choice and Welfare, Vol. 11, No. 3, 1994, pp 241--252.
``Undominated Nash Implementation in Bounded Mechanisms,'' with Tom Palfrey and Sanjay Srivastava, Games and Economic Behavior, Vol. 6, No. 1, 1994, pp 474--501.
``A Proof of the Existence of Speculative Equilibria,'' Journal of Economic Theory, Vol. 64, No. 1, 1994, pp 221--233.
``On the Relation Between Undominated Strategies and Nash Equilibria for Two Person, Finite Games,'' with Sanjay Srivastava, Economics Letters Vol. 45, 1994, pp 315--318.
``Speculative Equilibria and Technical Analysis,'' Hitotsubashi Journal of Economics, Vol. 34, Special Issue, 1993, pp 149--161.
``Incentive Compatibility and Competitive Allocations,'' Economics Letters, Vol. 40, 1992, pp 299--302.
``Implementation in Undominated Strategies: A Look at Bounded Mechanisms,'' Review of Economic Studies, Vol. 59, No. 201, 1992, pp 757-- 775.
``Implementing a Public Project and Distributing Its Cost,'' with Herv\'e Moulin, Journal of Economic Theory, Vol. 57, No. 1, 1992, pp 125--140.
``On Two Person Nash Implementable Social Choice Functions,'' with Sanjay Srivastava, Social Choice and Welfare, Vol. 9, No. 3, 1992, pp 263--264.
``Stock, Options, and Deferred Compensation,'' with Ed Lazear, Research in Labor Economics, Vol. 12, 1991, pp 41--62.
``Speculation and Price Fluctuations with Private, Extrinsic Signals,'' with Jim Peck, Journal of Economic Theory, Vol. 55, No. 2, 1991, pp 274--295.
``Bayesian Implementation,'' Econometrica, Vol. 59, No. 2, 1991, pp 461-477, reprinted in Recent Developments in Game Theory, edited by Eric Maskin, 1999, Edward Elgar Publishers.
``Equilibrium, Price Formation and the Value of Private Information,'' The Review of Financial Studies, Vol. 4, No. 1, 1991, pp 1--16.
``Optimal Hedging and Equilibrium in a Dynamic Futures Market,'' with Darrell Duffie, The Journal of Economic Dynamics and Control, Vol. 14, No. 1, 1990, pp 21--33.
``Optimal Innovation of Futures Contracts,'' with Darrell Duffie, The Review of Financial Studies, Vol. 2, No. 3, 1989, pp 275-- 296.
``Maximin, Leximin, and the Protective Criterion: Characterizations and Comparisons,'' with Salvador Barbera, The Journal of Economic Theory, Vol. 46, October 1988, pp 34-- 44.
``Continuous Utility Functions in Consumer Theory: A Set of Duality Theorems,'' The Journal of Mathematical Economics, Vol. 15, Spring 1986, pp 63--77.
``Integration of Demand and Continuous Utility Functions,'' The Journal of Economic Theory, Vol. 38, April 1986, pp 298--312. Note: correction at bottom of page 304 - condition (C) is not satisfied by Cobb-Douglas or CES utility functions.

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Last Updated: June, 2012. Please send comments to: jacksonm@stanford.edu.