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The Stability and Efficiency of Economic and Social Networks

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Author Info
Matthew O. Jackson (California Institute of Technology)

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Abstract

This paper studies the formation of networks among individuals. The focus is on the compatibility of overall societal welfare with individual incentives to form and sever links. The paper reviews and synthesizes some previous results on the subject, and also provides new results on the existence of pairwise-stable networks and the relationship between pairwise stable and efficient networks in a variety of contexts and under several definitions of efficiency.

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Paper provided by EconWPA in its series Microeconomics with number 0211011.

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Date of creation: 04 Nov 2002
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Handle: RePEc:wpa:wuwpmi:0211011

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Keywords: networks; network formation; stability; efficiency; social networks;

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Find related papers by JEL classification:
A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D20 - Microeconomics - - Production and Organizations - - - General

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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.:
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Full references

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. Falk, Armin & Kosfeld, Michael, 2003. "It's All About Connections: Evidence on Network Formation," CEPR Discussion Papers 3970, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Vincent Vannetelbosch & Olivier Tercieux, 2005. "A Characterization of Stochastically Stable Networks," Working Papers 2005.48, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  3. Page Jr. Frank H & Wooders, Myrna & Kamat, Samir, 2003. "Networks and Farsighted Stability," The Warwick Economics Research Paper Series (TWERPS) 689, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  4. Rodrigo J. Harrison & Roberto Munoz, 2003. "Stability and Equilibrium Selection in a Link Formation Game," Game Theory and Information 0306004, EconWPA. [Downloadable!]
  5. Ruys, P.H.M., 2002. "A managed service economy with an equilibrium for marketable services," Discussion Paper 1, Tilburg University, Center for Economic Research. [Downloadable!]
  6. Antoni Calvo-Armengol & Matthew O. Jackson, 2002. "Social Networks in Determining Employment and Wages: Patterns, Dynamics, and Inequality," Microeconomics 0211007, EconWPA. [Downloadable!]
    Other versions:
  7. Matthew O. Jackson & Anne van den Nouweland, 2001. "Strongly Stable Networks," University of Oregon Economics Department Working Papers 2001-3, University of Oregon Economics Department, revised 15 Nov 2002. [Downloadable!]
    Other versions:
  8. Ana, MAULEON & Huasheng, SONG & Vincent, VANNETELBOSCH, 2006. "Networks for Free Trade Agreements among Heterogeneous Countries," Discussion Papers (ECON - Département des Sciences Economiques) 2006029, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
    Other versions:
  9. Bhaskar Dutta & Sayantan Ghosal & Debraj Ray, 2004. "Farsighted Network Formation," Working papers 122, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
    Other versions:
  10. Vincent Vannetelbosch & Ana Mauleon & José Sempere-Monerris, 2005. "R&D Networks Among Unionized Firms," Working Papers 2005.49, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  11. Page, Jr. Frank H. & Wooders, Myrna H & Kamat, Samir, 2004. "Farsightedly Basic Networks," The Warwick Economics Research Paper Series (TWERPS) 702, University of Warwick, Department of Economics. [Downloadable!]
  12. Huasheng, SONG & Vincent, VANNETELBOSCH, 2005. "International R&D Collaboration Networks," Discussion Papers (ECON - Département des Sciences Economiques) 2005035, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
    Other versions:
  13. Herings, P. Jean-Jacques & Peeters, Ronald, 2006. "Homotopy Methods to Compute Equilibria in Game Theory," Research Memoranda 046, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  14. Michael Kosfeld, . "Network Experiments," IEW - Working Papers iewwp152, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  15. Sudipta Sarangi & H. Haller, . "Nash Networks with Heterogeneous Agents," Departmental Working Papers 2003-06, Department of Economics, Louisiana State University. [Downloadable!]
    Other versions:
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