Social Network Dynamics : Individual-Level Mechanisms and Aggregate Outcomes
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Based on a calibrated computational multi-agent model with an overlapping generations structure, we investigate society-level consequences of creation and destruction of social ties at the individual level. The steady state of the simulated social network exhibits realistic small-world topology. We also find that societies whose social networks are relatively frequently reconfigured, display relatively higher social trust, willingness to cooperate, and economic performance - at the cost of lower social utility. Similar outcomes are found for societies where social tie dissolution is relatively weakly linked to family closeness.
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- KAE Working Papers 
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