Building Social Networks
We examine the process of building social relationships as a non-cooperative game that requires mutual consent and involves reaching out to others at a cost. Players create their social network from amongst their set of acquaintances. Having acquaintances allows players to form naive beliefs about the feasibility of building direct relationships with their acquaintances. These myopic beliefs describe how the other players are expected to respond to the initiation of a link by a player. We introduce a stability concept called "monadic stability" where agents play a best response to their formed myopic beliefs such that these beliefs are self-confirming. The resulting equilibrium networks form subset of the set of pairwise stable networks.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.diw.de/en
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:ner:tilbur:urn:nbn:nl:ui:12-77112 is not listed on IDEAS
- repec:dgr:kubcen:200584 is not listed on IDEAS
- ELLEFLAMME, Paul & BLOCH, Francis, .
"Market sharing agreements and collusive networks,"
CORE Discussion Papers RP
-1711, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Matthew O. Jackson & Francis Bloch, 2004.
"The Formation of Networks with Transfers among Players,"
2004.80, Fondazione Eni Enrico Mattei.
- Bloch, Francis & Jackson, Matthew O., 2007. "The formation of networks with transfers among players," Journal of Economic Theory, Elsevier, vol. 133(1), pages 83-110, March.
- Bloch, Francis & Jackson, Matthew, 2004. "The Formation of Networks with Transfers among Players," Working Papers 1194, California Institute of Technology, Division of the Humanities and Social Sciences.
- Stef Tijs & Anne van den Nouweland & Bhaskar Dutta, 1998.
"Link formation in cooperative situations,"
International Journal of Game Theory,
Springer, vol. 27(2), pages 245-256.
- Dutta, B. & van den Nouweland, C.G.A.M. & Tijs, S.H., 1995. "Link formation in cooperative situations," Discussion Paper 1995-35, Tilburg University, Center for Economic Research.
- Dutta, B. & van den Nouweland, C.G.A.M. & Tijs, S.H., 2003. "Link formation in cooperative situations," Other publications TiSEM 840ac1d0-9e23-41a7-832e-8, Tilburg University, School of Economics and Management.
- Dutta, B. & van den Nouweland, C.G.A.M. & Tijs, S.H., 1998. "Link formation in cooperative situations," Other publications TiSEM fb302bdf-f6ab-4909-99d5-5, Tilburg University, School of Economics and Management.
- Sudipta Sarangi & Robert P. Gilles, .
"Stable Networks and Convex Payoffs,"
Departmental Working Papers
2005-13, Department of Economics, Louisiana State University.
- Matthew O. Jackson, 2003.
"A survey of models of network formation: Stability and efficiency,"
1161, California Institute of Technology, Division of the Humanities and Social Sciences.
- Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, EconWPA.
- repec:ner:tilbur:urn:nbn:nl:ui:12-82556 is not listed on IDEAS
- Jackson, Matthew O. & Watts, Alison, 2002.
"On the formation of interaction networks in social coordination games,"
Games and Economic Behavior,
Elsevier, vol. 41(2), pages 265-291, November.
- Matthew O. Jackson & Alison Watts, 2000. "On the Formation of Interaction Networks in Social Coordination Games," Econometric Society World Congress 2000 Contributed Papers 0778, Econometric Society.
- repec:dgr:kubcen:200470 is not listed on IDEAS
- Fudenberg, Drew & Levine, David K, 1993.
Econometric Society, vol. 61(3), pages 523-45, May.
- repec:ebl:ecbull:v:3:y:2003:i:5:p:1-9 is not listed on IDEAS
- Matthew O. Jackson & Asher Wolinsky, 1995.
"A Strategic Model of Social and Economic Networks,"
1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp642. 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: (Bibliothek)
If references are entirely missing, you can add them using this form.