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Resources Flows Asymmetries in Strict Nash Networks with Partner Heterogeneity

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  • Pascal Billand

    ()
    (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon)

  • Christophe Bravard

    ()
    (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon)

  • Sudipta Sarangi

    (Department of Economics, Louisiana State University - Department of Economics, Louisiana State University)

Abstract

This paper introduces a partner heterogeneity assumption in the one-way flow model of Bala and Goyal (2000, [1]). Our goal consists in the characterization of strict Nash networks with regard to the set of resources obtained by players. We use the notion of condensation network which allows us to divide the population in sets of players who obtain the same resources and we order these sets according to the resources obtained. Accordingly, we can examine the relationship between heterogeneity and asymmetries in networks. We establish that the nature of heterogeneity plays a crucial role on asymmetries observed in equilibrium networks.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00574256.

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Date of creation: 2011
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Handle: RePEc:hal:journl:halshs-00574256

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Related research

Keywords: Nash networks; one-way flow model; condensation networks; chain; inf-semi-lattice;

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  1. Andrea Galeotti, 2004. "One-way Flow Networks: the Role of Heterogeneity," Tinbergen Institute Discussion Papers 04-031/1, Tinbergen Institute.
  2. Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September.
  3. Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2011. "Strict Nash networks and partner heterogeneity," International Journal of Game Theory, Springer, vol. 40(3), pages 515-525, August.
  4. Andrea Galeotti & Sanjeev Goyal, 2002. "Network Formation with Heterogeneous Players," Tinbergen Institute Discussion Papers 02-069/1, Tinbergen Institute.
  5. McBride, Michael, 2008. "Position-specific information in social networks: Are you connected?," Mathematical Social Sciences, Elsevier, vol. 56(2), pages 283-295, September.
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