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In search of efficient network structures: the needle in the haystack

Author

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  • Nicolas Carayol

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, ADIS - Analyse des Dynamiques Industrielles et Sociales - UP11 - Université Paris-Sud - Paris 11 - Département d'Economie)

  • Pascale Roux

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, ADIS - Analyse des Dynamiques Industrielles et Sociales - UP11 - Université Paris-Sud - Paris 11 - Département d'Economie)

  • Murat Yildizoğlu

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

Searching for efficient networks can prove a very difficult analytical and even computational task. In this paper, we explore the possibility of using the genetic algorithms (GA) technique to identify efficient network structures in the case of non-trivial payoff functions. The robustness of this method in predicting optimal networks is tested on the two simple stylized models introduced by Jackson and Wolinsky (1996), for which the efficient networks are known over the whole state space of the parameters' values. This approach allows us to obtain new exploratory results in the case of the linear-spatialized connections model proposed by Johnson and Gilles (Rev Econ Des 5:273–299, 2000), for which the efficient allocation of bilateral connections is driven by contradictory forces that push either for a centralized structure around a coordinating agent, or for only locally and evenly distributed connections.

Suggested Citation

  • Nicolas Carayol & Pascale Roux & Murat Yildizoğlu, 2008. "In search of efficient network structures: the needle in the haystack," Post-Print hal-00279311, HAL.
  • Handle: RePEc:hal:journl:hal-00279311
    DOI: 10.1007/s10058-007-0036-1
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    References listed on IDEAS

    as
    1. Robert P. Gilles & Cathleen Johnson, 2000. "original papers : Spatial social networks," Review of Economic Design, Springer;Society for Economic Design, vol. 5(3), pages 273-299.
    2. Carayol, Nicolas & Roux, Pascale, 2009. "Knowledge flows and the geography of networks: A strategic model of small world formation," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 414-427, August.
    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. Carayol, Nicolas & Roux, Pascale & YIldIzoGlu, Murat, 2008. "Inefficiencies in a model of spatial networks formation with positive externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 495-511, August.
    5. Nicolas Carayol & Pascale Roux, 2004. "Behavioral Foundations And Equilibrium Notions For Social Network Formation Processes," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 77-92.
    6. Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, University Library of Munich, Germany.
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    Cited by:

    1. Johannes VAN DER POL, 2016. "Social interactions between innovating firms: an analytical review of the literature," Cahiers du GREThA (2007-2019) 2016-23, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).

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    More about this item

    Keywords

    Networks; Efficiency; Genetic Algorithms;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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