Overconsumption in Social Networks

This paper aims to analyze the equilibrium overconsumption in social networks. Weite two characters (jealousy and keeping up with Joneses) into utility function toxpress externality of consumption. We also present a social network which is formedy a dynamic process and find out the equilibrium outcome and the gap betweenompetitive equilibrium and social planner solution in a representative social network.eywords: Jealousy, Keeping up with Joneses, Social Networks.