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Endogenous link strength in directed communication networks

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  • Deroian, F.

Abstract

We study the formation of a directed communication network in which agents distribute a fixed amount of resource over links. Indirect benefits transit through the path maximizing the product of link strength. In this environment, the wheel architecture is shown to be both the unique efficient and the unique Nash architecture.

Suggested Citation

  • Deroian, F., 2009. "Endogenous link strength in directed communication networks," Mathematical Social Sciences, Elsevier, vol. 57(1), pages 110-116, January.
  • Handle: RePEc:eee:matsoc:v:57:y:2009:i:1:p:110-116
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    Cited by:

    1. Harmsen - van Hout, Marjolein J.W. & Herings, P. Jean-Jacques & Dellaert, Benedict G.C., 2013. "Communication network formation with link specificity and value transferability," European Journal of Operational Research, Elsevier, pages 199-211.
    2. Michael R. Galbreth & Bikram Ghosh & Mikhael Shor, 2012. "Social Sharing of Information Goods: Implications for Pricing and Profits," Marketing Science, INFORMS, vol. 31(4), pages 603-620, July.
    3. Chiu Ki So, 2016. "Network Formation with Endogenous Link Strength and Decreasing Returns to Investment," Games, MDPI, Open Access Journal, vol. 7(4), pages 1-9, December.
    4. Kenan Huremovic, 2014. "Rent Seeking and Power Hierarchies: A Noncooperative Model of Network Formation with Antagonistic Links," Working Papers 2014.45, Fondazione Eni Enrico Mattei.
    5. Charoensook, Banchongsan, 2016. "Nodewise Decay in Two-way Flow Nash Network: a Study of Network Congestion," ET: Economic Theory 249353, Fondazione Eni Enrico Mattei (FEEM).
    6. Breitmoser, Yves & Vorjohann, Pauline, 2013. "Efficient structure of noisy communication networks," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 396-409.
    7. Francesco Feri & Miguel A.Mel?ndez-Jim?nez, 2009. "Coordination in Evolving Networks with Endogenous Decay," Working Papers 2009-19, Faculty of Economics and Statistics, University of Innsbruck.
    8. Deroian, F., 2008. "Dissemination of spillovers in cost-reducing alliances," Research in Economics, Elsevier, vol. 62(1), pages 34-44, March.
    9. Francesco Feri & Miguel Meléndez-Jiménez, 2013. "Coordination in evolving networks with endogenous decay," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 955-1000, November.

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