Inefficiencies in a model of spatial networks formation with positive externalities
In this paper, we make an exploratory use of computational techniques (genetic algorithms and Monte Carlo simulations) to compute efficient and emergent networks in a spatialized version of the connections model of Jackson and Wolinski [Jackson, M.O., Wolinski, A., 1996. A strategic model of social and economic networks. Journal of Economic Theory 71, 44-74]. This approach allows us to observe and discuss inefficiencies that arise in a strategic network formation context with imperfectly link-mediated positive externalities to connections and spatial link costs. Our results highlight that, depending on the strength of the externalities, emergent and efficient networks may share several structural properties. Nevertheless, emergent networks are insufficiently dense and should be more structured around central agents.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Robles, Jack, 1998. "Evolution with Changing Mutation Rates," Journal of Economic Theory, Elsevier, vol. 79(2), pages 207-223, April.
- Matthew O. Jackson & Asher Wolinsky, 1995.
"A Strategic Model of Social and Economic Networks,"
1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Jackson, Matthew O. & Watts, Alison, 2002.
"The Evolution of Social and Economic Networks,"
Journal of Economic Theory,
Elsevier, vol. 106(2), pages 265-295, October.
- Lerner, Josh, 1995. " Venture Capitalists and the Oversight of Private Firms," Journal of Finance, American Finance Association, vol. 50(1), pages 301-18, March.
- Leigh TESFATSION, 1995.
"A Trade Network Game With Endogenous Partner Selection,"
36, Iowa State University Department of Economics.
- Tesfatsion, Leigh, 1997. "A Trade Network Game with Endogenous Partner Selection," Staff General Research Papers 1680, Iowa State University, Department of Economics.
- Vega-Redondo, Fernando, 2006.
"Building up social capital in a changing world,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 30(11), pages 2305-2338, November.
- Dupouet, Olivier & Yildizoglu, Murat, 2006.
"Organizational performance in hierarchies and communities of practice,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 61(4), pages 668-690, December.
- Olivier DUPOUËT (BETA UMR CNRS 7522) & Murat YILDIZOGLU (IFReDE-E3i), 2003. "Organizational performance in hierarchies and communities of practice," Cahiers du GRES (2002-2009) 2003-06, Groupement de Recherches Economiques et Sociales.
- Bloch, Francis & Jackson, Matthew O., 2007.
"The formation of networks with transfers among players,"
Journal of Economic Theory,
Elsevier, vol. 133(1), pages 83-110, March.
- Bloch, Francis & Jackson, Matthew, 2004. "The Formation of Networks with Transfers among Players," Working Papers 1194, California Institute of Technology, Division of the Humanities and Social Sciences.
- Matthew O. Jackson & Francis Bloch, 2004. "The Formation of Networks with Transfers among Players," Working Papers 2004.80, Fondazione Eni Enrico Mattei.
- Kirman, Alan P. & Vriend, Nicolaas J., 2001. "Evolving market structure: An ACE model of price dispersion and loyalty," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 459-502, March.
- Murat Yildizoglu & Pascale Roux & Nicolas Carayol, 2005.
"Efficiency of network Structures: The Needle in the Haystack,"
- Murat Yildizoglu & Nicolas Carayol & Pascale Roux, 2005. "Efficiency of Network Structures: The Needle in the Haystack," Post-Print hal-00160968, HAL.
- Murat Yildizoglu & Nicolas Carayol & Pascale Roux, 2005. "Efficiency of Network Structures: The Needle in the Haystack," Post-Print hal-00160962, HAL.
- Nicolas CARAYOL (ADIS, BETA) & Pascale ROUX (ADIS, BETA) & Murat YILDIZOGLU (E3I, IFReDE-GRES), 2005. "Efficiency of network structures: The needle in the haystack," Cahiers du GRES (2002-2009) 2005-06, Groupement de Recherches Economiques et Sociales.
- Jackson, Matthew O. & Rogers, Brian W., 2005.
"The economics of small worlds,"
1214, California Institute of Technology, Division of the Humanities and Social Sciences.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Nicolas Carayol & Pascale Roux, 2004. "Behavioral Foundations And Equilibrium Notions For Social Network Formation Processes," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 77-92.
- Robert P. Gilles & Cathleen Johnson, 2000. "original papers : Spatial social networks," Review of Economic Design, Springer, vol. 5(3), pages 273-299.
- Watts, Alison, 2001. "A Dynamic Model of Network Formation," Games and Economic Behavior, Elsevier, vol. 34(2), pages 331-341, February.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:67:y:2008:i:2:p:495-511. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.