We model network formation when heterogeneous nodes enter sequentially and form connections through both random meetings and network-based search, but with type-dependent biases. We show that there is “long-run integration”, whereby the composition of types in sufficiently old nodesʼ...

Frontmatter -- Contents -- Preface -- PART I. BACKGROUND AND FUNDAMENTALS OF NETWORK ANALYSIS -- PART II. MODELS OF NETWORK FORMATION -- PART III. IMPLICATIONS OF NETWORK STRUCTURE -- PART IV. METHODS, TOOLS, AND EMPIRICAL ANALYSES -- Afterword -- Bibliography -- Index

The organization of individuals into networks and groups is of fundamental importance in many social and economic interactions. Examples range from networks of personal contacts used to obtain information about job opportunities to the formation of trading partnerships, alliances, cartels, and...