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Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71 …, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between … results that relate situations of positive externalities with stable networks that cannot be 'too dense' in a well …
Persistent link: https://www.econbiz.de/10010272547
and the implications for the structure of pairwise stable networks. First, different definitions of convexity (concavity … own links and strategic complements, a local uniqueness property of pairwise stable networks is derived. The results do …
Persistent link: https://www.econbiz.de/10010272600
Most network games assume that the best response of a player is a linear function of the actions of her neighbors; clearly, this is a restrictive assumption. We developed a theory called sign-equivalent transformation (SET) underlying the mathematical structure behind a system of equations...
Persistent link: https://www.econbiz.de/10014076777
It is impossible, in general, to extend an asymmetric two-player game to networks, because there must be two …
Persistent link: https://www.econbiz.de/10013068518
This paper studies strategic interaction in networks. We focus on games of strategic substitutes and strategic …
Persistent link: https://www.econbiz.de/10011794635
, pairwise-Nash and proper equilibrium networks coincide, where pairwise stable networks are robust to one-link deviations, while … pairwise-Nash networks are robust to one-link creation but multi-link severance. Under these conditions, proper equilibria in …
Persistent link: https://www.econbiz.de/10014066536
in endogenously formed networks. …
Persistent link: https://www.econbiz.de/10012793442
In this chapter, I provide an overview of research on social networks and their role in shaping behavior and economic … outcomes. I include discussion of empirical and theoretical analyses of the role of social networks in markets and exchange …, models of network formation, models for the statistical analysis of social networks, as well as community detection. …
Persistent link: https://www.econbiz.de/10014025691
We study the structure of pairwise stable networks from a very general point. Rather than assuming a particular … empty or complete network are always pairwise stable, stable symmetric networks exist, or stable networks with a connected … networks: they are nested split graphs (NSG). We illustrate these results with many examples from the literature, including …
Persistent link: https://www.econbiz.de/10010386357
We consider a co-evolutionary model of social coordination and network formation where agents may decide on an action in a 2x2 - coordination game and on whom to establish costly links to. We find that a payoff dominant convention is selected for a wider parameter range when agents may only...
Persistent link: https://www.econbiz.de/10010341151