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Modeling resource flow asymmetries using condensation networks

Author

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  • Pascal Billand

    (Université de Lyon, UJM - Université Jean Monnet - Saint-Étienne, GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Bravard

    (GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique, UPMF - Université Pierre Mendès France - Grenoble 2)

  • Sudipta Sarangi

    (KIIT University - Partenaires INRAE)

Abstract

This paper examines strict Nash networks in the noncooperative directed flow model of Bala and Goyal (Econometrica 68(5):1181–1230, 2000) with partner heterogeneity (payoff of a player in a link depends on the identity of her link partner). We focus on the asymmetries with regard to the resources obtained by players. Using the notion of condensation networks, we partition the population into groups of players who obtain the same resources and order these groups according to the resources they obtain. We show that the partner heterogeneity assumption impacts the strict Nash networks asymmetries in a different way than Galeotti (Econ Theory 29(1):163–179, 2006) player heterogeneity assumption (the payoff of a player in a link depends on her own identity).

Suggested Citation

  • Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2013. "Modeling resource flow asymmetries using condensation networks," Post-Print hal-02648002, HAL.
    • Handle: RePEc:hal:journl:hal-02648002
    DOI: 10.1007/s00355-012-0697-8
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    Cited by:

    1. Pascal Billand & Christophe Bravard & Jacques Durieu & Sudipta Sarangi, 2019. "Firm Heterogeneity And The Pattern Of R&D Collaborations," Economic Inquiry, Western Economic Association International, vol. 57(4), pages 1896-1914, October.
    2. Ping Sun & Elena Parilina, 2022. "Impact of Utilities on the Structures of Stable Networks with Ordered Group Partitioning," Dynamic Games and Applications, Springer, vol. 12(4), pages 1131-1162, December.

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