We combine survey data on friendship networks and individual
characteristics with experimental observations from dictator games.
Dictator offers are primarily explained by social distance, giving
follows a simple inverse distance law. While student demographics
play a minor role in explaining offer amounts, individual heterogeneity
is important for network formation. In particular, we detect
significant homophilous behavior; students connect to others similar
to themselves. Moreover, the network data reveal a strong preference
for cliques, students connect to those already close. The study is one
of the first to identify network architecture with individual behavior
in a strategic context. (JEL D44, H82)
Goeree, Jacob K., Margaret A. McConnell, Tiffany Mitchell, Tracey Tromp, and Leeat Yariv.
"The 1/d Law of Giving."
American Economic Journal: Microeconomics,