Premium
The Old‐Boy Network and the Young‐Gun Effect
Author(s) -
Taylor Curtis R.
Publication year - 2000
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/1468-2354.00088
Subject(s) - computer security , class (philosophy) , psychology , internet privacy , medicine , business , social psychology , computer science , artificial intelligence
A model of an exclusive group or class whose membership is governed by personal contact and interaction is studied. Members of this old‐boy network attempt to shield themselves from transacting with opportunistic or incompetent individuals by dealing only infrequently with unproven nonmembers. This injures the unproven but qualified agents not in the network. Moreover, because recruitment of a new member creates a public good for network members, too little recruiting is performed in equilibrium.