A unifying model of strategic network formation

Olaizola, Norma; Valenciano, Federico

doi:10.1007/s00182-017-0592-8

Cited by 6 publications

(3 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Each step narrows the set of candidate networks. It is also worth remarking that the result on efficiency in the "unifying" model in Olaizola and Valenciano (2018), whose proof was extremely lengthy, is now a direct corollary of Theorem 1 in this work.…”

Section: Concluding Commentsmentioning

confidence: 55%

See 1 more Smart Citation

Characterization of efficient networks in a generalized connections model with endogenous link strength

Olaizola

Valenciano

2020

SERIEs

Self Cite

View full text Add to dashboard Cite

We consider a natural generalization of Jackson and Wolinsky's (J Econ Theory 71:44-74, 1996) connections model where the quality or strength of a link depends on the amount invested in it and is determined by a non-decreasing function of that amount. The information that the nodes receive through the network is the revenue from investments in links. We prove that in this most general version of the connections model, the only possibly non-empty efficient networks, in the sense of maximizing the aggregate profit, are still the all-encompassing star and the complete network, with the sole and rare exception of a highly particular case where there is a draw between the allencompassing star, the complete network and a whole range of a particular type of nested split graph structures intermediate between them. Keywords Network formation • Connections model • Nested split graph • Efficiency JEL Classification A14 • C7 • D85 We thank the editor and two anonymous referees for their comments. This research is supported by the Spanish Ministerio de Economía y Competitividad under Projects ECO2015-66027-P and ECO2015-67519-P (MINECO/FEDER). Both authors also receive Basque Government Departamento de Educación, Política Lingüística y Cultura funding for Grupos Consolidados IT1367-19. N. Olaizola, F. Valenciano: BRiDGE Group (http://www.bridgebilbao.es).

show abstract

Section: Concluding Commentsmentioning

confidence: 55%

“…It is noteworthy that once again the same types of structure emerge in the final steps to prove this result as in the lengthy proof under much more restrictive conditions in the unifying model ofOlaizola and Valenciano (2018) without using Proposition 1, and indeed using it as inOlaizola and Valenciano (2019).…”

mentioning

confidence: 69%

Characterization of efficient networks in a generalized connections model with endogenous link strength

Olaizola

Valenciano

2020

SERIEs

Self Cite

View full text Add to dashboard Cite

show abstract

“…Consequently, it motivates several research questions. These are, for examples, questions on the impacts of agent heterogeneity on the characterization of equilibrium networks and efficient networks, as well as existence of tension between the two with these general frameworks of (Olaizola and Valenciano, 2015) and (Olaizola and Valenciano, 2018). These unanswered questions become further research to be explored.…”

Section: Discussionmentioning

confidence: 99%

A Note on Partner Heterogeneity and Strict Nash Networks

Charoensook¹

2022

TEL

View full text Add to dashboard Cite

This note extends the studies on the impacts of partner heterogeneity in two-way flow Strict Nash network of (Billand et al., 2011) by allowing for the existence of small information decay. I show that the incorporation of small information decay does not change the results of this aforementioned paper: every Strict Nash network is a minimally connected i B or branching network. Since the studies on the roles of partner heterogeneity by this aforementioned paper are limited to the assumption that link formation is unilateral, I also propose another extension that studies the roles of partner heterogeneity in a more general model of network formation proposed by (Olaizola and Valenciano, 2015), which allows link formation to be both unilateral and bilateral. I show that the inclusion of partner heterogeneity breaks away a major result in this aforementioned paper: Nash network no longer consists of at most one nontrivial strongly full subnetwork.

show abstract

Dominance of weighted nested split graph networks in connections models

Olaizola

Valenciano

2019

Int J Game Theory

View full text Add to dashboard Cite

A unifying model of strategic network formation

Cited by 6 publications

References 15 publications

Characterization of efficient networks in a generalized connections model with endogenous link strength

Characterization of efficient networks in a generalized connections model with endogenous link strength

A Note on Partner Heterogeneity and Strict Nash Networks

Dominance of weighted nested split graph networks in connections models

Contact Info

Product

Resources

About