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How do Interactions...
How do Interactions Influence Formation of Social Networks? : A General Microfounded Explanation
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- Nordvall Lagerås, Andreas (author)
- Stockholms universitet,Matematiska institutionen
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- Seim, David (author)
- Stockholms universitet,Institutet för internationell ekonomi
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(creator_code:org_t)
- Stockholm : IIES, 2009
- English 25 s.
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Series: Seminar Paper / Institute for International Economic Studies, Stockholm University. (Online), 1653-610X ; 761
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Abstract
Subject headings
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- This paper investigates the strategic interaction effects that precede network formation. We find that for a general class of payoff functions which, among other things, feature strict supermodularity, the degree of a node is a sufficient statistic for the action it undertakes. Dynamically, we construct a general model where each period consists of two stages: first, a game on the given network is played and second, a link is either created or severed. It turns out that the payoff functions we consider give absolute convergence to the absorbing class of networks called nested split graphs. These networks do not only possess mathematically tractable characteristics, but we can also interpret real-world networks as perturbed nested split graphs. The general framework provided here can be applied to more or less complex models of network formation.
Subject headings
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Economics (hsv//eng)
Keyword
- social networks
- network formation
- supermodularity
- social interaction
- Economics
- Nationalekonomi
Publication and Content Type
- vet (subject category)
- rap (subject category)
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