Confirming Information Flows in Networks
AbstractSocial networks, be it on the internet or in real life, facilitate information flows. We model this by giving agents incentives to link with others and receive information through those links. We consider networks where agents have an incentive to confirm the information they receive from others. Our paper analyzes the social networks that are formed. We first study the existence of Nash equilibria and then characterize the set of strict Nash networks. Next, we characterize the set of strictly efficient networks and discuss the relationship between strictly efficient networks and strict Nash networks. Finally, we check the robustness of our results by allowing for heterogeneity among agents, possibility of bilateral deviations of agents, and decay in 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 University Library of Munich, Germany in its series MPRA Paper with number 45835.
Date of creation: Apr 2013
Date of revision:
connections model; confirmation; two-way flow models.;
Other versions of this item:
- Pascal Billand & Christophe Bravard & Jurjen Kamphorst & Sudipta Sarangi, 2012. "Confirming Information Flows in Networks," Tinbergen Institute Discussion Papers 12-019/1, Tinbergen Institute.
- Billand, P. & Bravard, C. & Kamphorst, J. & Sarangi, S., 2013. "Confirming information flows in networks," Working Papers 2013-06, Grenoble Applied Economics Laboratory (GAEL).
- Sudipta Sarangi & Pascal Billand & Christophe Bravard & Jurjen Kamphorst, . "Confirming Information Flows in Networks," Departmental Working Papers 2012-02, Department of Economics, Louisiana State University.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-13 (All new papers)
- NEP-GTH-2013-04-13 (Game Theory)
- NEP-MIC-2013-04-13 (Microeconomics)
- NEP-NET-2013-04-13 (Network Economics)
- NEP-SOC-2013-04-13 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Matthew O. Jackson & Asher Wolinsky, 1994.
"A Strategic Model of Social and Economic Networks,"
1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- 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.
- Galeotti, Andrea & Goyal, Sanjeev & Kamphorst, Jurjen, 2006.
"Network formation with heterogeneous players,"
Games and Economic Behavior,
Elsevier, vol. 54(2), pages 353-372, February.
- Andrea Galeotti & Sanjeev Goyal, 2002. "Network Formation with Heterogeneous Players," Tinbergen Institute Discussion Papers 02-069/1, Tinbergen Institute.
- Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003. "Network Formation with Heterogeneous Players," Economics Discussion Papers 562, University of Essex, Department of Economics.
- Andrea Galeotti & Sanjeev Goyal, 2010.
"The Law of the Few,"
American Economic Review,
American Economic Association, vol. 100(4), pages 1468-92, September.
- Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2011. "Nash Networks With Imperfect Reliability And Heterogeous Players," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 181-194.
- Bala, V. & Goyal, S., 1995.
"Learning from Neighbors,"
Econometric Institute Research Papers
EI 9549-/A, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- Sudipta Sarangi & Pascal Billand & Christophe Bravard, . "On the Interaction between Heterogeneity and Decay in Directed Networks," Departmental Working Papers 2010-04, Department of Economics, Louisiana State University.
- K. De Jaegher & J.J.A. Kamphorst, 2010.
"Two-way Flow Networks with Small Decay,"
Tinbergen Institute Discussion Papers
10-125/1, Tinbergen Institute.
- Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September.
- Venkatesh Bala & Sanjeev Goyal, 2000. "original papers : A strategic analysis of network reliability," Review of Economic Design, Springer, vol. 5(3), pages 205-228.
- Hojman, Daniel A. & Szeidl, Adam, 2008. "Core and periphery in networks," Journal of Economic Theory, Elsevier, vol. 139(1), pages 295-309, March.
- 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.
- Kim, Chongmin & Wong, Kam-Chau, 2007. "Network formation and stable equilibrium," Journal of Economic Theory, Elsevier, vol. 133(1), pages 536-549, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.