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Dominance of weighted nested split graph networks in connections models

Author

Listed:
  • Norma Olaizola

    (Universidad del País Vasco)

  • Federico Valenciano

    (Universidad del País Vasco)

Abstract

In this paper, we address the question of the efficiency of weighted networks in a setting where nodes derive utility from their direct and indirect connections. Under rather general conditions, based on a set of assumptions about the value that connections in a weighted network generate, and about link-formation technology, we prove that any network is dominated by a special type of nested split graph weighted network. These conditions include some of the models in the literature, which are particular cases of this general model.

Suggested Citation

  • Norma Olaizola & Federico Valenciano, 2020. "Dominance of weighted nested split graph networks in connections models," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 75-96, March.
    • Handle: RePEc:spr:jogath:v:49:y:2020:i:1:d:10.1007_s00182-019-00676-2
    DOI: 10.1007/s00182-019-00676-2
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    References listed on IDEAS

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    Cited by:

    1. Olaizola, By Norma & Valenciano, Federico, 2021. "Efficiency and stability in the connections model with heterogeneous nodes," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 490-503.
    2. Li, Xueheng, 2023. "Designing weighted and directed networks under complementarities," Games and Economic Behavior, Elsevier, vol. 140(C), pages 556-574.
    3. Olaizola, Norma & Valenciano, Federico, 2022. "Efficient networks in connections models with heterogeneous nodes and links," MPRA Paper 114884, University Library of Munich, Germany.

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    More about this item

    Keywords

    Weighted network; Efficiency; Nested split graph;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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