In this note we introduce different levels of decay in the Goyal, Galeotti and Kamphorst (GGK) insider-outsider model of network formation. First, we deal with situations where the amount of decay is sufficiently low to avoid superfluous connections in strict Nash networks and we examine the...

This paper examines strict Nash networks in the noncooperative directed flow model of Bala and Goyal (Econometrica 68(5):1181–1230, 2000) with partner heterogeneity (payoff of a player in a link depends on the identity of her link partner). We focus on the asymmetries with regard to the...

We provide existence results in a game with local spillovers where the payoff function satisfies both convexity and the strategic substitutes property. We show that there always exists a stable pairwise network in this game, and provide a condition which ensures the existence of pairwise...

In this article, we examine the role played by heterogeneity in the popular “connections model” of Jackson and Wolinsky (J Econ Theory 71(1):355–365, <CitationRef CitationID="CR5">1996</CitationRef>). We prove that when heterogeneity with respect to the values of resources, or the information decay parameter, depends on the identity...</citationref>