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Modeling Resource Flow Asymmetries using Condensation Networks

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  • Sudipta Sarangi

    ()

  • Pascal Billand

    ()

  • Christophe Bravard

    ()

Abstract

This paper analyzes the asymmetries with regard to the resources obtained by groups of players in equilibrium networks. We use the notion of condensation networks which allows us to partition the population into sets of players who obtain the same resources and we order these sets according to the resources obtained. We establish that the nature of heterogeneity plays a crucial role on asymmetries observed in equilibrium networks. Our approach is illustrated by introducing the partner heterogeneity assumption into the one-way ow model of Bala and Goyal[1].

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Paper provided by Department of Economics, Louisiana State University in its series Departmental Working Papers with number 2012-01.

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Handle: RePEc:lsu:lsuwpp:2012-01

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  1. Michael McBride, 2003. "Position-specific information in social networks: Are you connected?," Levine's Working Paper Archive 506439000000000265, David K. Levine.
  2. Robert P. Gilles & Cathleen Johnson, 2000. "original papers : Spatial social networks," Review of Economic Design, Springer, vol. 5(3), pages 273-299.
  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, 2004. "One-way Flow Networks: the Role of Heterogeneity," Tinbergen Institute Discussion Papers 04-031/1, Tinbergen Institute.
  5. Hojman, Daniel A. & Szeidl, Adam, 2008. "Core and periphery in networks," Journal of Economic Theory, Elsevier, vol. 139(1), pages 295-309, March.
  6. Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September.
  7. Kim, Chongmin & Wong, Kam-Chau, 2007. "Network formation and stable equilibrium," Journal of Economic Theory, Elsevier, vol. 133(1), pages 536-549, March.
  8. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, Econometric Society, vol. 68(5), pages 1181-1230, September.
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