Efficient Networks in Models with Player and Partner Heterogeneity

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Abstract

This paper characterizes efficient networks in player and partner heterogeneity models for both the two-way flow and the one-way flow networks. Player (partner) dependent network formation allows benefits and costs to be player (partner) heterogeneous, which is an important extension for modeling social networks in the real world. This paper shows that efficient networks are minimally connected and have either a star-type or a variation of star type architectures in the two-way flow model, and have the wheel architecture in the one-way flow model.
Original languageEnglish
Pages (from-to)100-118
JournalThe Manchester School
Volume86
Issue number1
Early online date10 Aug 2017
DOIs
Publication statusE-pub ahead of print - 10 Aug 2017

Keywords

  • Efficiency
  • Networks
  • Player and Partner Heterogeneity

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