A Field Study on Matching with Network Externalities

We study the effects of network externalities within a protocol for matching faculty to offices in a new building. Using web and survey data on faculty's attributes and choices, we identify the different layers of the social network: institutional affiliation, coauthorships, and friendships. We...

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Bibliographic Details
Published in:The American economic review 2012-08, Vol.102 (5), p.1773-1804
Main Authors: Baccara, Mariagiovanna, İmrohoroğlu, Ayşe, Wilson, Alistair J., Yariv, Leeat
Format: Article
Language:English
Subjects:
Accounting
Co authorship
Coefficients
Colleges & universities
Data analysis
Economic externalities
Economic theory
Estimation methods
Evaluation
Externalities
Externality
Field study
Friendship
Game theory
Joint authorship
Layouts
Neighborhoods
Network effects
Offices
Peers
Seniority
Social networks
Social surveys
Studies
U.S.A
Welfare economics
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Summary:We study the effects of network externalities within a protocol for matching faculty to offices in a new building. Using web and survey data on faculty's attributes and choices, we identify the different layers of the social network: institutional affiliation, coauthorships, and friendships. We quantify the effects of network externalities on choices and outcomes, disentangle the layers of the networks, and quantify their relative influence. Finally, we assess the protocol used from a welfare perspective. Our study suggests the importance and feasibility of accounting for network externalities in assignment problems and evaluates techniques that can be employed to this end.
ISSN:0002-8282
1944-7981
DOI:10.1257/aer.102.5.1773