IDEAS home Printed from https://ideas.repec.org/p/ags/feemth/291805.html
   My bibliography  Save this paper

On the Interaction between Small Decay, Agent Heterogeneity and Diameter of Minimal Strict Nash Networks in Two-way Flow Model: A Note

Author

Listed:
  • Charoensook, Banchongsan

Abstract

In this note, I study the roles of value heterogeneity - i.e., agents are heterogeneous in terms of values of nonrival information thay they possessed - in determining the shapes of two-way flow Strict Nash networks when small amount of decay is present. I do so by extending the two-way flow network with small decay of De Jaegher and Kamphorst (J ECON BEHAV ORGAN, 2015). Results of this extension shows that the effects of value heterogeneity on Strict Nash networks, when small decay is present, largely resemble the effects of heterogeneity in link formation cost - without decay - found in the literature. Another surprising finding is that value heterogeneity can extend the diameters of Strict Nash networks without changing any other properties. In the discussion section of this note, I relate this finding to two well-known concepts in the studies of social networks - small world and preferential attachment.

Suggested Citation

  • Charoensook, Banchongsan, 2019. "On the Interaction between Small Decay, Agent Heterogeneity and Diameter of Minimal Strict Nash Networks in Two-way Flow Model: A Note," ETA: Economic Theory and Applications 291805, Fondazione Eni Enrico Mattei (FEEM).
  • Handle: RePEc:ags:feemth:291805
    DOI: 10.22004/ag.econ.291805
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/291805/files/NDL2019-020.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.291805?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Billand, Pascal & Bravard, Christophe & Sarangi, Sudipta, 2012. "Existence of Nash networks and partner heterogeneity," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 152-158.
    2. Falk Armin & Kosfeld Michael, 2012. "It's all about Connections: Evidence on Network Formation," Review of Network Economics, De Gruyter, vol. 11(3), pages 1-36, September.
    3. Nermuth, Manfred & Pasini, Giacomo & Pin, Paolo & Weidenholzer, Simon, 2013. "The informational divide," Games and Economic Behavior, Elsevier, vol. 78(C), pages 21-30.
    4. Yaron Leitner, 2004. "Financial networks: contagion, commitment, and private sector bailouts," Working Papers 02-9, Federal Reserve Bank of Philadelphia.
    5. Rodrigo J. Harrison & Roberto Munoz, 2003. "Stability and Equilibrium Selection in a Link Formation Game," Game Theory and Information 0306004, University Library of Munich, Germany.
    6. Frank H. Page & Myrna H. Wooders, 2009. "Endogenous Network Dynamics," Working Papers 2009.28, Fondazione Eni Enrico Mattei.
    7. Dev, Pritha, 2014. "Identity and fragmentation in networks," Mathematical Social Sciences, Elsevier, vol. 71(C), pages 86-100.
    8. Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2013. "Modeling resource flow asymmetries using condensation networks," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(3), pages 537-549, September.
    9. repec:cep:stitep:/2013/564 is not listed on IDEAS
    10. Arthur Schram & Boris Van Leeuwen & Theo Offerman, 2013. "Superstars Need Social Benefits: An Experiment on Network Formation," Working Papers 1306, Departament Empresa, Universitat Autònoma de Barcelona, revised Jul 2013.
    11. Simpson Zhang & Mihaela van der Schaar, 2018. "Reputational Dynamics in Financial Networks During a Crisis," Working Papers 18-03, Office of Financial Research, US Department of the Treasury.
    12. Lorenzo Ductor & Sanjeev Goyal & Anja Prummer, 2018. "Gender & Collaboration," Working Papers 856, Queen Mary University of London, School of Economics and Finance.
    13. Rajgopal Kannan & Lydia Ray & Sudipta Sarangi, 2007. "The structure of information networks," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(1), pages 119-134, January.
    14. Cilem Selin Hazir & Corinne Autant-Bernard, 2012. "Using Affiliation Networks to Study the Determinants of Multilateral Research Cooperation Some empirical evidence from EU Framework Programs in biotechnology," Working Papers 1212, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    15. Ana Mauleon & Huasheng Song & Vincent Vannetelbosch, 2010. "Networks of Free Trade Agreements among Heterogeneous Countries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 471-500, June.
    16. Belhaj, Mohamed & Bervoets, Sebatian & Deroïan, Frédéric, 2016. "Efficient networks in games with local complementarities," Theoretical Economics, Econometric Society, vol. 11(1), January.
    17. Acemoglu, Daron & Makhdoumi, Ali & Malekian, Azarakhsh & Ozdaglar, Asuman, 2017. "Privacy-constrained network formation," Games and Economic Behavior, Elsevier, vol. 105(C), pages 255-275.
    18. Markus Kinateder & Luca Paolo Merlino, 2021. "The Evolution of Networks and Local Public Good Provision: A Potential Approach," Games, MDPI, Open Access Journal, vol. 12(3), pages 1-12, July.
    19. Konno, Tomohiko, 2013. "An imperfect competition on scale-free networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(21), pages 5453-5460.
    20. Finneran, Lisa & Kelly, Morgan, 2003. "Social networks and inequality," Journal of Urban Economics, Elsevier, vol. 53(2), pages 282-299, March.
    21. Olaizola, Norma & Valenciano, Federico, 2021. "Efficiency and stability in the connections model with heterogeneous node," MPRA Paper 107797, University Library of Munich, Germany.

    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:feemth:291805. 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: . General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.