The Impact of Social Structure on Economic Outcomes

@article{Granovetter2005TheIO,
  title={The Impact of Social Structure on Economic Outcomes},
  author={Mark S. Granovetter},
  journal={Journal of Economic Perspectives},
  year={2005},
  volume={19},
  pages={33-50}
}
S ocial structure, especially in the form of social networks, affects economic outcomes for three main reasons. First, social networks affect the flow and the quality of information. Much information is subtle, nuanced and difficult to verify, so actors do not believe impersonal sources and instead rely on people they know. Second, social networks are an important source of reward and punishment, since these are often magnified in their impact when coming from others personally known. Third… 

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