Discrete Choice with Social Interactions

@article{Brock1995DiscreteCW,
  title={Discrete Choice with Social Interactions},
  author={William A. Buz Brock},
  journal={IEEE Transactions on Information Theory},
  year={1995}
}
  • W. Brock
  • Published 1 April 2001
  • Economics
  • IEEE Transactions on Information Theory
This paper provides an analysis of aggregate behavioural outcomes when individual utility exhibits social interaction effects. We study generalized logistic models of individual choice which incorporate terms reflecting the desire of individuals to conform to the behaviour of others in an environment of noncooperative decisionmaking. Laws of large numbers are generated in such environments. Multiplicity of equilibria in these models, which are equivalent to the existence of multiple self… 
Discrete Choice with Social Interactions and Endogenous Memberships
This paper tackles the issue of self-selection in social interactions models. I develop a theory of sorting and behavior, when the latter is subject to social influences, extending the model
Structure and emergence in a nested logit model with social and spatial interactions
TLDR
The research presented in this paper extends Brock and Durlauf’s model to allow for unobserved preference heterogeneity between choice alternatives by studying the nested logit model and relaxes the assumption of global interactions and considers instead local interactions within several hypothesized social and spatial network structures.
Simultaneous equations with binary outcomes and social interactions
TLDR
This paper provides a microfoundation for the econometric model by considering an incomplete information game where individuals interact in multiple activities through a network and describes the sufficient condition for the existence of a unique BNE of the game.
Identification of binary choice models with social interactions
Equilibria in Models of Binary Choice with Heterogeneous Agents and Social Influence
TLDR
This model encompasses the classical downward sloping demand curve as a particular case and derives exactly necessary and sufficient conditions for the existence of single or multiple equilibria as a function of the strength of social influence.
Patterns of Consumption in a Discrete Choice Model with Asymmetric Interactions
We study the consumption behaviour of an asymmetric network of heterogeneous agents in the framework of discrete choice models with stochastic decision rules. We assume that the interactions among
Patterns of Consumption in a Discrete Choice Model with Asymmetric Interactions
TLDR
The role of symmetric versus asymmetric contributions to the utility function and also that of idiosyncratic preferences, costs and memory in the consumption decision of the agents are discussed.
Rational expectations equilibria of economies with local interactions
Equilibrium Concepts for Social Interaction Models
TLDR
It is shown that the equilibria of the Brock–Durlauf model are steady states of a differential equation which is a deterministic approximation of the sample-path behavior of Blume's model.
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