Endogenous Link Strength in Directed Communication Networks
AbstractWe present a model of communication network formation in which links'strengths are endogenously determined by individual incentives. Agents are endowed with a fixed amount of resource which they can distribute as they want in directed links. Individuals capture benefits from both direct and indirect access to others, in a way that takes into account the strength of each link. The wheel architecture is shown to be the unique efficient and stable architecture under mild restriction.
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Date of creation: 2006
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Directed Communication Network; Endogenous Link Strength; Efficiency; Stability;
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- Deroian, F., 2009. "Endogenous link strength in directed communication networks," Mathematical Social Sciences, Elsevier, vol. 57(1), pages 110-116, January.
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