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From Assortative To Dissortative Networks: The Role Of Capacity Constraints

  • MICHAEL D. KÖNIG

    ()

    (Department of Management, Technology and Economics, ETH Zurich, Kreuzplatz 5, CH-8032 Zurich, Switzerland)

  • CLAUDIO J. TESSONE

    ()

    (Department of Management, Technology and Economics, ETH Zurich, Kreuzplatz 5, CH-8032 Zurich, Switzerland)

  • YVES ZENOU

    ()

    (Stockholm University and Research Institute of Industrial Economics (IFN), Department of Economics, 106 91 Stockholm, Sweden)

We consider a dynamic model of network formation where agents form and sever links based on the centrality of their potential partners. We show that the existence of capacity constrains in the amount of links an agent can maintain introduces a transition from dissortative to assortative networks. This effect can shed light on the distinction between technological and social networks as it gives a simple mechanism explaining how and why this transition occurs.

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Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Advances in Complex Systems.

Volume (Year): 13 (2010)
Issue (Month): 04 ()
Pages: 483-499

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Handle: RePEc:wsi:acsxxx:v:13:y:2010:i:04:p:483-499
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