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The Insider-Outsider Model Reexamined

  • Pascal Billand

    (Gate Lyon-Saint-Etienne, University Jean Monnet, Saint-Etienne, 42023 Cedex 02, France)

  • Christophe Bravard

    (Gate Lyon-Saint-Etienne, University Jean Monnet, Saint-Etienne, 42023 Cedex 02, France)

  • Sudipta Sarangi


    (DIW Berlin and Department of Economics, Louisiana State University, Baton Rouge, LA 70803, USA)

In this note we introduce different levels of decay in the Goyal, Galeotti and Kamphorst (GGK) insider-outsider model of network formation. First, we deal with situations where the amount of decay is sufficiently low to avoid superfluous connections in strict Nash networks and we examine the architectures of strict Nash networks. We show that centrality and small diameter are robust features of strict Nash networks. Then, we study the Nash and efficient networks when the decay vanishes.

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Article provided by MDPI, Open Access Journal in its journal Games.

Volume (Year): 1 (2010)
Issue (Month): 4 (October)
Pages: 422-437

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Handle: RePEc:gam:jgames:v:1:y:2010:i:4:p:422-437:d:9940
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  1. Galeotti, Andrea & Goyal, Sanjeev & Kamphorst, Jurjen, 2006. "Network formation with heterogeneous players," Games and Economic Behavior, Elsevier, vol. 54(2), pages 353-372, February.
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