Status competition and benevolence in social networks
研究社交网络中由不对称偏好相互依赖导致的消费外部性,发现善意能改善社会福利,且对网络中有影响力的人更重要,并分析了减少过度消费和过度工作的政策干预。
Motivated by recent studies of network analysis, we explore the consumption externality that results from the interdependence of asymmetric preferences. In addition to the positional externality that results from jealousy or from the desire to leapfrog peers, we assume that agents are mutually benevolent, i.e., they are concerned about general welfare. Two contrasting scenarios, limited status competition and extensive status competition networks, are examined. Both these network structures suggest that social welfare improves in the presence of benevolence and that this matters more if the individual is more influential in her network. Finally, we analyse the corresponding policy intervention in response to a reduction in equilibrium overconsumption and overwork levels.