Advanced Search
MyIDEAS: Login

Network Formation under Heterogeneous Costs: The Multiple Group Model

Contents:

Author Info

  • Jurjen Kamphorst

    ()
    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Gerard van der Laan

    ()
    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

It is widely recognized that the shape of networks influences both individual and aggregate behavior. This raises the question which types of networks are likely to arise. Our paper fits into the literature that addresses this question. The paper continues on the work of Galeotti, Goyal and Kamphorst (2003). In their paper they investigate a model of network formation, where players are divided into groups. The costs of a link between any pair of players are increasing in the distance between the groups that these players belong to. They apply the solution concept of minimal curb sets to the case of two groups. In this paper we give a full characterization of the networks induced by a minimal curb set for any number of groups. To do so, we show that in our multiple group model each minimal curb set is a so-called super-tight curb set, that is a minimal curb set satisfying the condition that in each state of the set every player has the same best reply. From the proof it follows that every recurrent class of an unperturbed best reply dynamics is a minimal (super-tight) curb set and reversely. From this result we obtain the characterization of the types of networks that may arise in a minimal curb set. We show that such networks may have features that can not occur in networks with at most two groups. Nevertheless, local centrality and center-sponsorship are still important characteristics of the networks in minimal curb sets.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://papers.tinbergen.nl/04006.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-006/1.

as in new window
Length:
Date of creation: 13 Jan 2004
Date of revision:
Handle: RePEc:dgr:uvatin:20040006

Contact details of provider:
Web page: http://www.tinbergen.nl

Related research

Keywords: network formation; curb sets;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. K.J.M. De Jaegher & J.J.A. Kamphorst, 2008. "Network formation with decreasing marginal benefits of information," Working Papers 08-16, Utrecht School of Economics.
  2. K. De Jaegher & J.J.A. Kamphorst, 2010. "Two-way Flow Networks with Small Decay," Tinbergen Institute Discussion Papers 10-125/1, Tinbergen Institute.
  3. K. De Jaegher & J.J.A. Kamphorst, 2010. "Two-way Flow Networks with Small Decay," Tinbergen Institute Discussion Papers 10-125/1, Tinbergen Institute.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dgr:uvatin:20040006. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.