Social Capital and Social Quilts: Network Patterns of Favor Exchange

• DOI: 10.1257/aer.102.5.1857
• Publication Date: 2012-08-07T14:10:39Z
• Authors: Matthew O Jackson; Tomas Rodriguez-B...; Xu Tan
• Keywords: Social exchange theory; Social network (sociolinguistics); Economic Anthropology

We examine the informal exchange of favors in societies such that any two individuals interact too infrequently to sustain exchange, but social pressure possible loss multiple relationships can exchange. Patterns are locally enforceable and renegotiation-proof necessitate all links “supported”: exchanging have a common friend. In symmetric settings, robust networks “social quilts”: tree-like unions completely connected subnetworks. Examining favor 75 villages rural India, we find high levels support identify characteristics correlate with support. (JEL D85, O12, O18, Z13)