An Empirical Model for Strategic Network Formation
AbstractWe develop and analyze a tractable empirical model for strategic network formation that can be estimated with data from a single network at a single point in time. We model the network formation as a sequential process where in each period a single randomly selected pair of agents has the opportunity to form a link. Conditional on such an opportunity, a link will be formed if both agents view the link as beneficial to them. They base their decision on their own characateristics, the characteristics of the potential partner, and on features of the current state of the network, such as whether the two potential partners already have friends in common. A key assumption is that agents do not take into account possible future changes to the network. This assumption avoids complications with the presence of multiple equilibria, and also greatly simplifies the computational burden of anlyzing these models. We use Bayesian markov-chain-monte-carlo methods to obtain draws from the posterior distribution of interest. We apply our methods to a social network of 669 high school students, with, on average, 4.6 friends. We then use the model to evaluate the effect of an alternative assignment to classes on the topology of the network.
Download InfoIf 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.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16039.
Date of creation: May 2010
Date of revision:
Note: LS TWP
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- C0 - Mathematical and Quantitative Methods - - General
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Angelo Mele, 2010.
"A Structural Model of Segregation in Social Networks,"
10-16, NET Institute.
- Angelo Mele, 2010. "A structural model of segregation in social networks," CeMMAP working papers CWP32/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Riccardo Crescenzi & Max Nathan & Andrés Rodríguez-Pose, 2014.
"Do Inventors Talk to Strangers? On Proximity and Collaborative Knowledge Creation,"
SERC Discussion Papers
0153, Spatial Economics Research Centre, LSE.
- Crescenzi, Riccardo & Nathan, Max & Rodríguez-Pose, Andrés, 2013. "Do Inventors Talk to Strangers? On Proximity and Collaborative Knowledge Creation," IZA Discussion Papers 7797, Institute for the Study of Labor (IZA).
- Riccardo Crescenzi & Max Nathan & Andrés Rodríguez-Pose, 2013. "Do inventors talk to strangers? On proximity and collaborative knowledge creation," Papers in Evolutionary Economic Geography (PEEG) 1324, Utrecht University, Section of Economic Geography, revised Dec 2013.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.