IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2610.24792.html

Strategic Origins of Network Structure

Author

Listed:
  • Christoph Riedl
  • Rory Smead

Abstract

The structure and dynamics of complex networks are intimately linked. Despite immense progress in statistically characterizing these systems, a generalized mechanistic framework explaining why specific mesoscale structures emerge remains elusive. Here we introduce the game-graph equilibrium, the stable rest point of a payoff-driven partner-choice dynamic, analogous to a Nash equilibrium. This reveals network structure as the fossilized record of strategic interaction. We prove analytically that two-type games have exactly four network topologies, which are their exhaustive thermodynamic phases: assortative, disassortative, and two core-peripheries. This result generalizes to $K^K$ topological classes for $K$-type interactions. Furthermore, four distinct Nash equilibria produce core-periphery topologies, yet their payoffs reveal whether the underlying dynamic is cooperative or exploitative. To recover the generating dynamics from observed networks, we develop mechanistic inference by constraining a block model to lie on a low-dimensional, game-theoretic manifold. Applied to real-world networks, the model yields interpretable quantities, distinguishes states that look identical to conventional methods, predicts network topologies it has never seen without retraining, and controls its own complexity without hand-tuned penalties. Networks such as international trade are well described by the model despite the hard constraint, suggesting that real-world systems are organized by payoff-driven partner choice. Our framework resolves a foundational ambiguity by offering a precise, mechanistic definition of communities: strategic equivalence.

Suggested Citation

  • Christoph Riedl & Rory Smead, 2026. "Strategic Origins of Network Structure," Papers 2610.24792, arXiv.org.
  • Handle: RePEc:arx:papers:2610.24792
    as

    Download full text from publisher

    File URL: https://arxiv.org/pdf/2610.24792
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    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:arx:papers:2610.24792. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.