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.
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1194, California Institute of Technology, Division of the Humanities and Social Sciences.
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1161, California Institute of Technology, Division of the Humanities and Social Sciences.
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Other publications TiSEM
fb302bdf-f6ab-4909-99d5-5, Tilburg University, School of Economics and Management.
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"Stable Networks and Convex Payoffs,"
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2005-13, Department of Economics, Louisiana State University.
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1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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