ELEONORA PATACCHINI

A key component of most strategic interactions is the location of the agents. Location should not only be defined in a narrow spatial sense: it can be social, as in social networks, where it is defined by links of friendship; or it can be defined by other types of links (culture, gender, relations) that matter to the agents. Studying the effect of location on economic outcomes poses challenging empirical questions, including the need to distinguish between self-selection (i.e., when location is chosen), contagion effects, and exposure to common shocks.