Social non-market interactions are important determinants of individual economic outcomes and welfare. Globalisation and the increased mobility of parts of the labour force as e.g. under the European common market raises interesting questions about the social costs and benefits of diversity. The project provides a novel and innovative perspective on the relationship between social interactions and diversity. Using game theoretic tools the proposed projects aims at developing and analysing models for the se lf-formation of groups, in the presence of informational spill-overs.
Main research questions will focus on whether self-forming groups display too little or too much diversity from a social perspective, and its dependence on history i.e. pre-existing groups of interaction. A second part of the proposal aims at testing the theory in the lab, and applying policy treatments. To carry out the proposed project Martin Bøg will spend an academic year at the Stockholm School of Economics (SSE) under the mentoring of Professor Jorgen Weibull. SSE is considered among the top European departments and have expertise in the desired fields of the proposer.
Martin Bøg is currently at the Department of Economics at University College London, as a post-doctoral research fellow at ELSE, the Centre for Economic Learning and Social Evolution. Martin Bøg expects to receive his Ph.D. ultimo January 2006 from University College London. He is currently undertaking research in a joint project with Professor Steffen Huck on the social dynamics of Internet fundraising. This project involves both applied econometrics and experimental economics, adding to the competencies of Martin Bøg.
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