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Behavioral Foundations And Equilibrium Notions For Social Network Formation Processes

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Author Info

  • NICOLAS CARAYOL

    ()
    (BETA (UMR CNRS 7522), Université Louis Pasteur, 61, avenue de la Forêt Noire, F-67085 Strasbourg Cedex, France)

  • PASCALE ROUX

    ()
    (LEREPS-GRES, Université de Toulouse 1, Manufacture des Tabacs, 21 Allée de Brienne, F-31000 Toulouse, France)

Abstract

This paper develops a framework for studying social network formation. Partly built upon a formalism used in theoretical economics, the network formation process we introduce is locally driven by agents who maximize a given individual payoff function. We examine two simple models and observe the limiting distributions of stochastically stable networks. We find that these networks share some of the features observed for social networks. In particular, we find critical values of the parameters for which the selected networks exhibit small world properties.

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Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Advances in Complex Systems.

Volume (Year): 07 (2004)
Issue (Month): 01 ()
Pages: 77-92

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Handle: RePEc:wsi:acsxxx:v:07:y:2004:i:01:p:77-92

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Related research

Keywords: Social networks formation; stochastically stable networks; preferential meeting; small worlds;

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Cited by:
  1. Nicolas Carayol & Pascale Roux, 2006. "Knowledge flows and the geography of networks. A strategic model of small worlds formation," Working Papers of BETA 2006-16, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  2. Carayol, Nicolas & Roux, Pascale & YIldIzoGlu, Murat, 2008. "Inefficiencies in a model of spatial networks formation with positive externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 495-511, August.
  3. Nicolas Carayol (ADIS, BETA) & Pascale Roux (ADIS, BETA) & Murat Yildizoglu (GREThA), 2007. "In search of efficient network structures: The needle in the haystack," Cahiers du GREThA 2007-11, Groupe de Recherche en Economie Théorique et Appliquée.

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