Homophily

About the seminar topic

We study how networks among MBA students form, drawing on a new and rich dataset. Our focus is on homophily, the tendency to connect with others who share similar characteristics. We document substantial homophily in traits such as race and gender. However, we show that preferences for interacting with peers of the same race or gender are quite mild. Instead, these homophily patterns are largely driven by a bias in the matching technology, which makes same-gender and same-race students significantly more likely to meet. We then investigate the sources of this bias. Using data on students’ participation in club events, we rule out the possibility that these biases stem from self-selection into specific clubs based on shared interests or preferences. We conjecture that the bias in matching arises from a Schelling-type mechanism. Even small preferences for homophily lead students to direct their search efforts toward similar others, ultimately generating segregation in interactions. We are currently collecting new data to test this mechanism.

Speaker bio

Andrea Galeotti is a Professor of Economics at London Business School, renowned for his expertise in microeconomics, industrial organisation and game theory, with a research focus on the economics of networks and business strategies in network industries. He previously held positions at the European University Institute and the University of Essex and has published in top journals such as The Review of Economic Studies and The American Economic Review. Recognised with the Leverhulme Prize and European Research Council grants, he serves as co-editor of The Review of Economic Studies and was elected Fellow of the Econometric Society in 2024.

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