MIDDLE EAST TECHNICAL UNIVERSITY

Department of Economics Seminar Series 

 

 

“Endogenous Socialization with Costly Behavior”


Abstract

We build a simple framework of endogenous socialization that can account for the observed costly behavior patterns in high-school friendships. We show that endogenizing the meeting process can be modelled as students' decisions about their costly activities they adopt during socialization. An equilibrium is derived in which people from the minority groups coordinate on a costly social activity – such as smoking – and are able to meet with others from their own group more often than they would do at random in the whole population. This equilibrium is unique under various specifications of the cost structure. We also empirically analyze friendship networks and costly behavior choices of high school students from Add Health data set and show that people belonging to minority racial groups in their school adopt costly behavior more, controlling for other factors.


by

 

Defne Mevsim

(Universitat Autònoma de Barcelona)

 

 

Date: March 28, 2022 (Monday)

Time: 14:00

 

Synchronous Online Seminar

Zoom Platform

 

Zoom Link

Meeting ID: 962 6861 4522

Passcode: 319178


Last Updated:
25/03/2022 - 18:31