IDEAS home Printed from https://ideas.repec.org/p/bri/uobdis/12-629.html
   My bibliography  Save this paper

Friends and Enemies: A Model of Signed Network Formation

Author

Listed:
  • Timo Hiller

Abstract

I propose a game of signed network formation, where agents make friends to coerce payoffs from enemies with fewer friends. The model accounts for the interplay between friendship and enmity. Nash equilibrium configurations are such that, either everyone is friends with everyone, or agents can be partitioned into sets of different size, where agents within the same set are friends and agents in different sets are enemies. These results mirror findings of a large body of work on signed networks in sociology, social psychology, international relations and applied physics.

Suggested Citation

  • Timo Hiller, 2012. "Friends and Enemies: A Model of Signed Network Formation," Bristol Economics Discussion Papers 12/629, School of Economics, University of Bristol, UK.
    • Handle: RePEc:bri:uobdis:12/629
    as

    Download full text from publisher

    File URL: http://www.bristol.ac.uk/efm/media/workingpapers/working_papers/pdffiles/dp12629.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
    2. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    3. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    4. David Rietzke & Brian Roberson, 2013. "The robustness of ‘enemy-of-my-enemy-is-my-friend’ alliances," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(4), pages 937-956, April.
    5. Easley,David & Kleinberg,Jon, 2010. "Networks, Crowds, and Markets," Cambridge Books, Cambridge University Press, number 9780521195331, September.
    6. repec:cup:cbooks:9780511771576 is not listed on IDEAS
    7. Jordan, J.S., 2006. "Pillage and property," Journal of Economic Theory, Elsevier, vol. 131(1), pages 26-44, November.
    8. Goyal, Sanjeev & Vega-Redondo, Fernando, 2007. "Structural holes in social networks," Journal of Economic Theory, Elsevier, vol. 137(1), pages 460-492, November.
    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. Goyal, S., 2018. "Heterogeneity and Networks," Cambridge Working Papers in Economics 1812, Faculty of Economics, University of Cambridge.
    2. Pramod C. Mane & Kapil Ahuja & Nagarajan Krishnamurthy, 2020. "Stability, efficiency, and contentedness of social storage networks," Annals of Operations Research, Springer, vol. 287(2), pages 811-842, April.
    3. Hiller, Timo, 2017. "Friends and enemies: a model of signed network formation," Theoretical Economics, Econometric Society, vol. 12(3), September.
    4. Goyal, S., 2016. "Networks and Markets," Cambridge Working Papers in Economics 1652, Faculty of Economics, University of Cambridge.
    5. Pandey, Siddhi Gyan, 2021. "Evolution of cooperative networks," Working Papers 21/346, National Institute of Public Finance and Policy.
    6. Matthew Elliott & Arun Chandrasekhar & Attila Ambrus, 2015. "Social Investments, Informal Risk Sharing, and Inequality," 2015 Meeting Papers 189, Society for Economic Dynamics.
    7. Pongou, Roland & Serrano, Roberto, 2016. "Volume of trade and dynamic network formation in two-sided economies," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 147-163.
    8. Attila Ambrus & Arun G. Chandrasekhar & Matt Elliott, 2014. "Social Investments, Informal Risk Sharing, and Inequality," NBER Working Papers 20669, National Bureau of Economic Research, Inc.
    9. Sofia Priazhkina & Samuel Palmer & Pablo Martín-Ramiro & Román Orús & Samuel Mugel & Vladimir Skavysh, 2024. "Digital Payments in Firm Networks: Theory of Adoption and Quantum Algorithm," Staff Working Papers 24-17, Bank of Canada.
    10. Sanjeev Goyal & Adrien Vigier, 2014. "Attack, Defence, and Contagion in Networks," Review of Economic Studies, Oxford University Press, vol. 81(4), pages 1518-1542.
    11. Britta Hoyer & Kris De Jaegher, 2023. "Network disruption and the common-enemy effect," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(1), pages 117-155, March.
    12. Haller, Hans & Hoyer, Britta, 2019. "The common enemy effect under strategic network formation and disruption," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 146-163.
    13. Mauro Napoletano & Stefano Battiston & Michael D König & Frank Schweitzer, 2008. "The efficiency and evolution of R&D Networks," Working Papers hal-01066189, HAL.
    14. Isabel Melguizo, 2023. "Group representation concerns and network formation," Bulletin of Economic Research, Wiley Blackwell, vol. 75(1), pages 151-179, January.
    15. Oded Stark & Jakub Bielawski & Fryderyk Falniowski, 2024. "Measuring income inequality in social networks," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(2), pages 333-356, June.
    16. Swapnil Dhamal & Y. Narahari, 2015. "Formation of Stable Strategic Networks with Desired Topologies," Studies in Microeconomics, , vol. 3(2), pages 158-213, December.
    17. repec:spo:wpmain:info:hdl:2441/9933 is not listed on IDEAS
    18. repec:hal:wpspec:info:hdl:2441/9935 is not listed on IDEAS
    19. Page Jr., Frank H. & Wooders, Myrna, 2009. "Strategic basins of attraction, the path dominance core, and network formation games," Games and Economic Behavior, Elsevier, vol. 66(1), pages 462-487, May.
    20. repec:spo:wpecon:info:hdl:2441/9935 is not listed on IDEAS
    21. René Brink, 2012. "On hierarchies and communication," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(4), pages 721-735, October.
    22. repec:hal:wpspec:info:hdl:2441/7346 is not listed on IDEAS
    23. Slikker, M. & Gilles, R.P. & Norde, H.W. & Tijs, S.H., 2000. "Directed Communication Networks," Other publications TiSEM 00f2df6e-3a8e-4ed3-84cf-2, Tilburg University, School of Economics and Management.
    24. Bernard Herskovic & João Ramos, 2020. "Acquiring Information through Peers," American Economic Review, American Economic Association, vol. 110(7), pages 2128-2152, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • 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:bri:uobdis:12/629. 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.

    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: Vicky Jackson (email available below). General contact details of provider: https://edirc.repec.org/data/sebriuk.html .

    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.