Coleman’s Theorem on Group Formation

Coleman’s Theorem provides insights into how groups form based on individual preferences and benefits. It states that in a network, individuals tend to connect with others who provide the greatest personal advantage, such as shared interests or mutual benefits. As people weigh the costs and rewards of forming ties, stable groups emerge where no one has an incentive to change their connections. Essentially, it explains that group formation results from rational choices aimed at maximizing individual benefits within the social context, leading to predictable patterns of community structure based on these incentives.