Next Article in Journal
Higher Order Hamiltonian Systems with Generalized Legendre Transformation
Previous Article in Journal
Resolving Decompositions for Polynomial Modules
Article Menu

Export Article

Open AccessArticle
Mathematics 2018, 6(9), 162; https://doi.org/10.3390/math6090162

Keeping up with the Neighbors: Social Interaction in a Production Economy

1
Institute of Economics, Tsinghua University, Beijing 100084, China
2
Department of Decision Sciences and Managerial Economics, The Chinese University of Hong Kong, Shatin, New Territories, Hong Kong, China
3
Department of Economics, School of Economics and Management, Tsinghua University, Beijing 100084, China
*
Author to whom correspondence should be addressed.
Received: 31 July 2018 / Revised: 5 September 2018 / Accepted: 7 September 2018 / Published: 9 September 2018
Full-Text   |   PDF [636 KB, uploaded 11 September 2018]   |  

Abstract

It is well-documented that individuals care about how others around them are doing. This paper studies a production economy in which consumers provide labor supply to a representative firm to earn income for consumption, and their utility depends on their own leisure time, their own consumption level, as well as their neighbors’ consumption levels. We characterize the unique equilibrium for such an economy, allowing for three different types of effects of the neighborhood size: linear effect, zero effect, and nonlinear effect. Four network structures (empty network, ring network, star network, and core-periphery network) with different production technologies are analyzed. Our work contributes to a better understanding of the general equilibrium effect of social preferences and network structures. View Full-Text
Keywords: production economy; social preferences; general equilibrium; social network production economy; social preferences; general equilibrium; social network
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Feng, Z.; Lien, J.W.; Zheng, J. Keeping up with the Neighbors: Social Interaction in a Production Economy. Mathematics 2018, 6, 162.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Mathematics EISSN 2227-7390 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top