Networks pervade social and economic life, and they play a prominent role in explaining a huge variety of social and economic phenomena. Standard economic theory did not give much credit to the role of networks until the early 1990s, but since then the study of the theory of networks has blossomed. At the heart of this research is the idea that the pattern of connections between individual rational agents shapes their actions and determines their rewards. The importance of connections has (...) in turn motivated the study of the very processes by which networks are formed. In Connections, Sanjeev Goyal puts contemporary thinking about networks and economic activity into context. He develops a general framework within which this body of research can be located. In the first part of the book he demonstrates that location in a network has significant effects on individual rewards and that, given this, it is natural that individuals will seek to form connections to move the network in their favor. This idea motivates the second part of the book, which develops a general theory of network formation founded on individual incentives. Goyal assesses the robustness of current research findings and identifies the substantive open questions. Written in a style that combines simple examples with formal models and complete mathematical proofs, Connections is a concise and self-contained treatment of the economic theory of networks, one that should become the natural source of reference for graduate students in economics and related disciplines. (shrink)

As part of an article symposium on their “Narrow Identities”, Partha Dasgupta and Sanjeev Goyal respond to commentaries by Jean-Paul Carvalho, John B. Davis, Peter Finke, and Miriam Teschl.

It is the primary duty of business to satisfy consumer by providing quality goods and services at right place, right time, in right quantity at a fair price. The need for consumer protection is recognized by law makers in India since ancient times. It was very well realized that a consumer is prone to exploitation on the part of providers of goods and services. Therefore, the ancient Indian law codes regulated not only social conditions but also the economic life of (...) people by establishing human values and code of trade practices to protect the interests of buyers. This article is mainly based on the detailed study of ancient Indian literature, that is, Manu Smriti, Narada Smriti, Brihaspati Smriti and Arthshastra. (shrink)

Our understanding of the decisions made under scenarios where both descriptive and experience-based information are available is very limited. Underweighting of small probabilities was observed in the gain domain when both description and experience were provided. The divergence observed from the prospect theory suggests a need for a separate or modified theory of decision making under risk. Recent studies suggest a possible role of probability weighting in the choice behaviour under risk. We investigated both gain and loss domains with and (...) without feedback for small and large probability conditions. We characterized the shape of the probability weighting function by a two-parameter functional form representing discriminability (concave-convex shape) and attractiveness (level of absolute weights relative to objective probability). We replicated four-fold pattern of risk attitude on non-WEIRD population. We find that feedback leads to underweighting of small probabilities and overweighting of large probabilities in the gain domain and overall underweighting of probabilities in the loss domain. We find that underweighting of small probabilities is driven by changes in discriminability and attractiveness components in the gain domain and changes in the attractiveness component in the loss domain. We have interpreted the results by proposing an updated belief-based account of decisions under uncertainty in which feedback, when available, influences the probability weighting mediating the choice behaviour. (shrink)

The title of the original article has been corrected. The correct title is Gandhi: Philosopher or Pragmatic Politician? Gandhi Against Caste, by Nishikant Kolge; Oxford University Press 2017; Total Pages 316; Price 695 INR; ISBN 13:978-0-19-947429-5.