Homophily in preferences or meetings? Identifying and estimating an iterative network formation model
同质性来自偏好还是相遇?迭代网络形成模型的识别与估计
Is homophily in social and economic networks driven by a taste for homogeneity (preferences) or by a higher probability of meeting individuals with similar attributes (opportunity)? This paper studies identification and estimation of an iterative network game that distinguishes between these two mechanisms. Our approach enables us to assess the counterfactual effects of changing the meeting protocol between agents. As an application, we study the role of preferences and…