Tim Hellmann & Fen Li:
The Transmission of Continuous Cultural Traits in Endogenous Social Networks
Abstract:
We study a OLG model of transmission of continuous cultural traits across generations in an endogenous social network. Children learn their cultural trait from their parents and their social environment modeled by network. Parents want their children to adopt a cultural trait that is similar to their own and engage in the socialization process of their children by forming new links or deleting connections. Changing links from the inherited network is costly, but having many links is benefitial. Studying the dynamics of cultural traits and networks, we find that polarization may obtain when extremist subgroups disconnect from the society. This is observed if costs of network changes and benefits from integration are low. For intermediate cost, convergence of all traits to one of the extremist's trait may occur. Large costs and/or large benefits from interactions always imply convergence to a moderate consesus.