Power and Core-Periphery Networks

Social networks frequently demonstrate a core-periphery structure where the set of nodes can be partitioned into a clique (“core”) and an empty network (“periphery”). A possible explanation for the emergence of this structure is provided by introducing type heterogeneity into the basic connections model. Linking preferences in a two-type society are “power based” if for any given path length, both types prefer to connect to the “superior” type over the “inferior” type. Core-periphery networks, in which the “superior” agents are in the core and the “inferior” agents are in the periphery, emerge as a dominant architecture (pairwise stable and strongly efficient) given “power based” linking preferences as long as the linking costs are intermediate. Thus, in this framework, the network formation process converts an exogenous, intellectual advantage into a central position in the social network