socialpref

This document summarizes a study that measures social capital within a social network. It defines two types of social capital: 1) preference-based social capital, which is based on altruism toward friends and declines with social distance; and 2) cooperative social capital, which arises from repeated interactions and cooperation between agents. The study finds evidence of both types of social capital - preference-based social capital increases the weight on a friend's utility by 15% while cooperative social capital adds another 5%.