NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Ayal Y. Chen-Zion

Amazon

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Institutional Affiliation: Amazon

NBER Working Papers and Publications

October 2019History Dependence, Cohort Attachment, and Job Referrals in Networks of Close Relationships
with James E. Rauch: w26358
We model network formation in a firm. Agents learn about the quality of their working relationships with each other. Their good relationships become their networks. Accumulating relationships becomes increasingly costly, however. Over time agents become less open to forming relationships with others unknown to them, leading their networks to be front-loaded with agents they met near the beginning of their careers. The interaction of this dynamic with turnover yields predictions about the time pattern of history dependence in an agent’s network as a function of his tenure. Mutual openness of newly arrived agents in a firm also leads to the cross-section prediction of “cohort attachment,” a tendency for members of an agent’s hiring cohort to be disproportionately represented in his network. ...

Published: Ayal Chen-Zion & James E. Rauch, 2020. "History dependence, cohort attachment, and job referrals in networks of close relationships," Journal of Economic Behavior & Organization, . citation courtesy of

 
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