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The Economics of Small Worlds

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Author Info
Matthew O. Jackson (Caltech)
Brian W. Rogers (Caltech)

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Abstract

We examine a simple economic model of network formation where agents benefit from indirect relationships. We show that small-world features - -- short path lengths between nodes together with highly clustered link structures --- necessarily emerge for a wide set of parameters.

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File URL: http://129.3.20.41/eps/game/papers/0503/0503004.pdf
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Publisher Info
Paper provided by EconWPA in its series Game Theory and Information with number 0503004.

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Length: 10 pages
Date of creation: 14 Mar 2005
Date of revision:
Handle: RePEc:wpa:wuwpga:0503004

Note: Type of Document - pdf; pages: 10
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Web page: http://129.3.20.41

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Related research
Keywords: networks; small worlds;

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Find related papers by JEL classification:
A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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References listed on IDEAS
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.:
  1. Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003. "Network Formation with Heterogeneous Players," Economics Discussion Papers 562, University of Essex, Department of Economics. [Downloadable!]
    Other versions:
  2. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October. [Downloadable!] (restricted)
    Other versions:
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Cited by:
(explanations, 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.)

  1. Dotan Persitz, 2009. "Power in the Heterogeneous Connections Model: The Emergence of Core-Periphery Networks," Working Papers 2009.42, Fondazione Eni Enrico Mattei. [Downloadable!]
  2. Yannis M. Ioannides, 2005. "Random Graphs and Social Networks: An Economics Perspective," Discussion Papers Series, Department of Economics, Tufts University 0518, Department of Economics, Tufts University. [Downloadable!]
  3. R. Andergassen & F. Nardini & M. Ricottilli, 2005. "Firms' Network Formation Through the Transmission of Heterogeneous Knowledge," Working Papers 543, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
  4. Matthew O. Jackson & Brian W. Rogers, 2005. "Search in the Formation of Large Networks: How Random are Socially Generated Networks?," Game Theory and Information 0503005, EconWPA. [Downloadable!]
    Other versions:
  5. Arun Sundararajan, 2008. "Local Network Effects and Complex Network Structure," Contributions to Theoretical Economics, Berkeley Electronic Press, vol. 7(1), pages 1319-1319. [Downloadable!] (restricted)
  6. Mark Bowden & Stuart McDonald, 2008. "The Impact of Interaction and Social Learning on Aggregate Expectations," Computational Economics, Springer, vol. 31(3), pages 289-306, April. [Downloadable!] (restricted)
  7. Michael McBride, 2006. "Limited Observation in Mutual Consent Networks," Advances in Theoretical Economics, Berkeley Electronic Press, vol. 6(1), pages 1314-1314. [Downloadable!] (restricted)
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This page was last updated on 2009-11-5.

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