Matthew O. Jackson

William D. Eberle Professor of Economics

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A Book on Networks

I have written a book entitled ``Social and Economic Networks,'' which synthesizes the literatures on the subject and is a resource for researchers in the area and a text for graduate courses. It is available Princeton University Press.
You can see the table of contents and the introductory chapter at netbook.pdf or netbook.eps.
Here are the Princeton University Press and Amazon pages for the book.
Here are links to some reviews of the book: a review by David Krackhardt that appeared in Science Magazine in October 2009, a review by Joan de Marti that appeared in Regional Science and Urban Economics in September 2009, a review by Haris Aziz in the ACM SIGecom Exchanges in July 2009, a review by John Curran in the Mathematical Association of American Online in March 2009, and a review by Karoly Takacs in JASSS in March 2009.
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).
A list of typos and clarifications is available at netbook-updates.pdf

Books Edited

• The Handbook of Social Economics will be forthcoming from Elsevier in 2009. Editors: Jess Benhabib, Alberto Bisin, Matthew O. Jackson
  

• 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.
  

Networks and Social Economics

• ``An Overview of Social Networks and Economic Applications,'' July 2009, forthcoming in the The Handbook of Social Economics, edited by J. Benhabib, A. Bisin, and M.O. Jackson, Elsevier Press.
  
• ``Peer Pressure,'' with Antoni Calvo-Armengol, forthcoming in the Journal of the European Economic Association.
  
• ``Diffusion, Strategic Interaction, and Social Structure,'' with Leeat Yariv, forthcoming in the Handbook of Social Economics (edited by Benhabib, Bisin, Jackson), Elsevier.
  
• ``Social Games: Matching and the Play of Finitely Repeated Games,'' with Alison Watts, forthcoming in Games and Economic Behavior.
  
• ``Naive Learning in Social Networks: Convergence, Influence and the Wisdom of Crowds,'' with Benjamin Golub, forthcoming in American Economic Journal: Microecnomics.
  
• ``Network Games,'' with Andrea Galeotti, Sanjeev Goyal, Fernando Vega-Redondo, and Leeat Yariv, forthcoming in the Review of Economic Studies
  
• ``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. Some supplementary material is available at netminority-supplement.eps or netminority-supplement.pdf.
  
• ``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. DOI: 10.2202/1935-1704.1523. There are a number of supporting files containing the data and implementation of the algorithms. Start with the ``Read-Me'' file at Community-ReadMe-Supportingdocuments-121706.pdf. The other files are the algorithm: AlgorithmFinal121606.nb, the citations data: all.csv, some summary statistics of the data: summary.xls, and a matrix of sizes: workbook3.txt.
  
• ``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: Microeconomics Vol. 1, No. 1, 124-150, 2009. Some supplementary material is available at mobility-supplementarymaterial.eps. or mobility-supplementarymaterial.pdf.
  
• ``Networks and Economic Behavior,'' in the The Annual Review of Economics, Vol. 1, pages 489-513, January 2009.
  
• ``Equilibrium Existence in Bipartite Social Games: A Generalization of Stable Matchings,'' with Alison Watts, Economics Bulletin, Vol. 3, No. 12, pp. 1-8, 2008.
  
• ``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.
  
• ``Network Formation,'' in The New Palgrave Dictionary of Economics and the Law , MacMillan Press, 2008.
  
• ``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
  
• ``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.
  
• ``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.
  
• ``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. Here is a longer version of the paper, with added detail.
  
• ``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).
  
• ``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.
  
• ``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 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.
  
• ``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.
  
• ``Allocation Rules for Network Games,'' Games and Economic Behavior, Volume 51, Issue 1, April 2005, Pages 128-154.
  
• ``The Effects of Social Networks on Employment and Inequality,'' with Toni Calvo-Armengol, American Economic Review, vol. 94, no. 3, 426-454, June 2004.
  
• ``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.
  
• ``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.
  
• ``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.
  
• ``The Evolution of Social And Economic Networks,'' with Alison Watts, Journal of Economic Theory, vol. 106, no. 2, pp 265-295, 2002.
  
• ``The Stability of Hedonic Coalition Structures,'' with Anna Bogomolnaia, Games and Economic Behavior, Vol. 38, No. 2, 2002, pp 201-230.
  
• ``The Existence of Pairwise Stable Networks,'' with Alison Watts, Seoul Journal of Economics, vol. 14, no. 3, pp 299-321, 2001.
  
• ``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.
  
• ``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.
  
  

Political Economy / Voting

• ``The Reasons for Wars - an Updated Survey,'' with Massimo Morelli, forthcoming in the Handbook on the Political Economy of War edited by Chris Coyne, Elgar Publishing.
  
• ``Strategic Militarization, Deterrence and War between Nations,'' with Massimo Morelli, forthcoming in the Quarterly Journal of Political Science
  
• ``Vote Buying: Legislatures and Lobbying,'' with Eddie Dekel and Asher Wolinsky, in the Quarterly Journal of Political Science. Volume 4, Issue 2, 103-128, July 2009.
  
• ``Vote Buying: General Elections,'' with Eddie Dekel and Asher Wolinsky, in the Journal of Political Economy Vol. 116, No. 2: 351-380, 2008.
  
• ``War, Transfers, and Political Bias,'' with Massimo Morelli, American Economic Review, Vol. 97, No. 4, pp 1353-1373, 2007.
  
• ``Nomination Processes and Policy Outcomes,'' with Laurent Mathevet and Kyle Mattes, Quarterly Journal of Political Science, Vol. 2, Iss. 1, pp. 67-94, 2007.
  
• ``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.
  
• ``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.
  
• ``Equilibrium Agenda Formation,'' with Bhaskar Dutta and Michel Le Breton, Social Choice and Welfare, Vol. 23, pp 21-57, 2004.
  
• ``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.
  
• ``Strategic Candidacy and Voting Rules,'' with Bhaskar Dutta and Michel Le Breton, Econometrica, Vol. 69, No. 4, 2001, pp 1013--1038.
  

Mechanism Design / Implementation / Strategy-Proofness

• `` Envy-Freeness and Implementation in Large Economies,'' with Ilan Kremer, The Review of Economic Design, Vol. 11, No. 3, pp. 185-198, 2007.
  
• ``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.
  
• ``Endogenous Games and Mechanisms: Side Payments among Players,'' with Simon Wilkie, Review of Economic Studies. Volume 72, Issue 2, April 2005, pages 543-566.
  
• ``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.
  
• ``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.
  
• ``A Crash Course in Implementation Theory,'' Social Choice and Welfare, Vol. 18, No. 4, 2001, pp 655-708.
  
• ``Voluntary Implementation,'' with Tom Palfrey, Journal of Economic Theory, Vol. 98, No. 1, 2001, pp 1--25; corrigendum
  
• ``Efficiency and Voluntary Implementation in Markets with Repeated Pairwise Bargaining,'' with Tom Palfrey, Econometrica, Vol. 66,No. 6, 1998, pp 1353-1388.
  
• ``Approxim ate 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.
  
• ``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.
  
• ``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.
  
• ``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.
  
• ``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.
  

Markets and Auctions

• ``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.
  
• ``On the Informational Inefficiency of Discriminatory Price Auctions,'' with Ilan Kremer, Journal of Economic Theory, Vol. 132, No. 1, pp 507-517, 2007.
  
• ``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.
  
• ``Existence of Equilibria in Single and Double Auctions,'' with Jeroen Swinkels, Econometrica, Vol. 73, No. 1, 93-139, 2005.
  
• ``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.
  
• ``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.
  
• ``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
  
• ``Asymptotic Revenue Equivalence in Auctions,'' with Valentina Bali, Journal of Economic Theory, Vol. 106, no.1, pp 161-176. 2002.
  
• ``The Optimal Design of a Market,'' with Sandro Brusco, Journal of Economic Theory, Vol. 88, No. 1, 1999, pp 1-39.
  
• ``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.
  
• ``Bid--Ask Spreads with Indirect Competition Among Specialists,'' with Thomas Gehrig, Journal of Financial Markets, Vol. 1, No. 1, 1998, pp 89-119.
  
• ``Approximately Competitive Equilibria in Large Economies,'' with Alejandro Manelli, Journal of Economic Theory, Vol. 77, No. 2, 1997, pp 354-376.
  
• ``A Proof of the Existence of Speculative Equilibria,'' Journal of Economic Theory, Vol. 64, No. 1, 1994, pp 221--233.
  
• ``Speculative Equilibria and Technical Analysis,'' Hitotsubashi Journal of Economics, Vol. 34, Special Issue, 1993, pp 149--161.
  
• ``Speculation and Price Fluctuations with Private, Extrinsic Signals,'' with Jim Peck, Journal of Economic Theory, Vol. 55, No. 2, 1991, pp 274--295.
  
• ``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.
  

Learning / Cognition / Decision / Consumer Behavior

• ``The Role of Responsibility in Strategic Risk-taking,'' with Gary Charness, in The Journal of Economic Behavior and Organization Vol. 69, 241-247, 2009.
  
• `` 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.
  
• ``Reputation versus Social Learning,'' with Ehud Kalai, Journal of Economic Theory, Vol. 88, No. 1, 1999, pp 40-59.
  
• ``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.
  
• ``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.
  
• ``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.
  
• ``Stock, Options, and Deferred Compensation,'' with Ed Lazear, Research in Labor Economics, Vol. 12, 1991, pp 41--62.
  
• ``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.
  

Various Surveys