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Endogenous link strength in directed communication networks

Author

Listed:
  • Frédéric Deroïan

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study the formation of a directed communication network in which agents distribute a fixed amount of resource over links. Indirect benefits transit through the path maximizing the product of link strength. In this environment, the wheel architecture is shown to be both the unique efficient and the unique Nash architecture.

Suggested Citation

  • Frédéric Deroïan, 2009. "Endogenous link strength in directed communication networks," Post-Print halshs-00369712, HAL.
    • Handle: RePEc:hal:journl:halshs-00369712
    DOI: 10.1016/j.mathsocsci.2008.06.007
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    Cited by:

    1. Michael R. Galbreth & Bikram Ghosh & Mikhael Shor, 2012. "Social Sharing of Information Goods: Implications for Pricing and Profits," Marketing Science, INFORMS, vol. 31(4), pages 603-620, July.
    2. Alan Griffith, 2025. "Efficiency in the two-way connections model," International Journal of Game Theory, Springer;Game Theory Society, vol. 54(2), pages 1-46, December.
    3. Norma Olaizola & Federico Valenciano, 2023. "A connections model with decreasing returns link-formation technology," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 14(1), pages 31-61, March.
    4. Charoensook, Banchongsan, "undated". "Nodewise Decay in Two-way Flow Nash Network: a Study of Network Congestion," ETA: Economic Theory and Applications 249353, Fondazione Eni Enrico Mattei (FEEM).
    5. Banchongsan Charoensook, 2016. "Nodewise Decay in Two-way Flow Nash Network: a Study of Network Congestion," Working Papers 2016.65, Fondazione Eni Enrico Mattei.
    6. Harmsen - van Hout, Marjolein J.W. & Herings, P. Jean-Jacques & Dellaert, Benedict G.C., 2013. "Communication network formation with link specificity and value transferability," European Journal of Operational Research, Elsevier, vol. 229(1), pages 199-211.
    7. Fershtman, Chaim & Persitz, Dotan, 2018. "Social Clubs and Social Networks," CEPR Discussion Papers 12874, C.E.P.R. Discussion Papers.
    8. Francesco Feri & Miguel Meléndez-Jiménez, 2013. "Coordination in evolving networks with endogenous decay," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 955-1000, November.
    9. Breitmoser, Yves & Vorjohann, Pauline, 2013. "Efficient structure of noisy communication networks," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 396-409.
    10. Kenan Huremović, 2021. "A noncooperative model of contest network formation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(2), pages 275-317, April.
    11. Norma Olaizola & Federico Valenciano, 2020. "Characterization of efficient networks in a generalized connections model with endogenous link strength," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(3), pages 341-367, September.
    12. Chiu Ki So, 2016. "Network Formation with Endogenous Link Strength and Decreasing Returns to Investment," Games, MDPI, vol. 7(4), pages 1-9, December.
    13. repec:ehu:ikerla:34463 is not listed on IDEAS
    14. Huremovic, Kenan, 2014. "Rent Seeking and Power Hierarchies: A Noncooperative Model of Network Formation with Antagonistic Links," Climate Change and Sustainable Development 172701, Fondazione Eni Enrico Mattei (FEEM).
    15. Tenev, Anastas P., 2024. "“Friends Are Thieves of Time”: Heuristic attention sharing in stable friendship networks," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 785-809.
    16. Dev, Pritha, 2018. "Networks of information exchange: Are link formation decisions strategic?," Economics Letters, Elsevier, vol. 162(C), pages 86-92.
    17. Deroian, F., 2008. "Dissemination of spillovers in cost-reducing alliances," Research in Economics, Elsevier, vol. 62(1), pages 34-44, March.

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