Unilateral vs. bilateral link-formation: A transition without decay

Olaizola, Norma; Valenciano, Federico

doi:10.1016/j.mathsocsci.2014.12.002

Cited by 4 publications

(32 citation statements)

References 19 publications

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“…In this case, the dominant structure is g ks . Thus v(g ks ) is given by (9), with (10). Thus, comparing this value with that of v(g ks+1 ) and v(g ks 1 ), we have…”

Section: Lemmamentioning

confidence: 95%

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A unifying model of strategic network formation

Olaizola

Valenciano

2017

Int J Game Theory

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We provide a model that merges two basic models of strategic network formation and incorporates them as extreme cases: Jackson and Wolinsky's connections model based on bilateral formation of links, and Bala and Goyal's two-way ‡ow model, where links can be unilaterally formed. In our model a link can be created unilaterally, but when it is only supported by one of the two players the ‡ow through it su¤ers some friction or decay, but more than when it is supported by both players. When the friction in singly-supported links is maximal (i.e. there is no ‡ow) we have Jackson and Wolinsky's connections model, while when ‡ow in singly-supported links is as good as in doubly-supported links we have Bala and Goyal's two-way ‡ow model. In this setting, a joint generalization of the results relative to e¢ ciency and stability in both seminal papers is achieved, and the robustness in both models is tested with positive results.JEL Classi…cation Numbers: A14, C72, D20, J00

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“…In this case, the dominant structure is g ks . Thus v(g ks ) is given by (9), with (10). Thus, comparing this value with that of v(g ks+1 ) and v(g ks 1 ), we have…”

Section: Lemmamentioning

confidence: 95%

“…9 Note that if ji 2 g, then ji 2 g i . 10 Although other interpretations are possible, in general, we give preference to the interpretation in terms of information. 11 Only to make it possible to call c and v matrices.…”

Section: Unilateral Vs Bilateral Link-formationmentioning

confidence: 99%

A unifying model of strategic network formation

Olaizola

Valenciano

2017

Int J Game Theory

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“…To achieve this we assume that a link resulting from collaboration of two agents provides a better channel of transmission than a link sponsored by only one agent. As this "side" of the triangle has a common "vertex" with that studied in Olaizola and Valenciano (2015a), i.e. Jackson and Wolinsky's model without decay, this transition provides a point of comparison with the results for efficiency, stability, and dynamics in that transitional model.…”

Section: Introductionmentioning

confidence: 92%

“…Olaizola and Valenciano (2014) introduces a model that integrates Bala and Goyal's one-way and two-way flow models without decay as particular extreme cases of a more general one. Olaizola and Valenciano (2015a) provides a new hybrid model which has a variant of Jackson and Wolinsky's connections model without decay and Bala and Goyal's two-way flow model as extreme cases. The point of this paper is to complete the "triangle", i.e.…”

Section: Introductionmentioning

confidence: 99%

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From bilateral two-way to unilateral one-way flow link-formation

Olaizola

Valenciano

2016

SERIEs

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We provide a model that allows for a transition between the simplest variation of two basic models of strategic network formation: Bala and Goyal's one-way flow model without decay, where links can be unilaterally formed, and a version without decay of Jackson and Wolinsky's connections model based on bilateral formation of links. In the transitional model introduced here, these two benchmark models appear as extreme cases. We study efficiency and Nash, strict Nash and pairwise Nash stability for the intermediate model. Dynamics are also discussed.We want to thank the editor and three anonymous referees for valuable comments that contributed to improve considerably the paper. The usual disclaimer applies.

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On the Interaction between Small Decay, Agent Heterogeneity and Diameter of Minimal Strict Nash Networks in Two-way Flow Model: A Note

Charoensook

2019

SSRN Journal

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In this note, I study the roles of value heterogeneity-i.e., agents are heterogeneous in terms of values of nonrival information thay they possessed-in determining the shapes of two-way flow Strict Nash networks when small amount of decay is present. I do so by extending the two-way flow network with small decay of De Jaegher and Kamphorst (J ECON BEHAV ORGAN, 2015). Results of this extension shows that the effects of value heterogeneity on Strict Nash networks, when small decay is present, largely resemble the effects of heterogeneity in link formation cost-without decay-found in the literature. Another surprising finding is that value heterogeneity can extend the diameters of Strict Nash networks without changing any other properties. In the discussion section of this note, I relate this finding to two well-known concepts in the studies of social networks-small world and preferential attachment.

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Unilateral vs. bilateral link-formation: A transition without decay

Cited by 4 publications

References 19 publications

A unifying model of strategic network formation

A unifying model of strategic network formation

From bilateral two-way to unilateral one-way flow link-formation

On the Interaction between Small Decay, Agent Heterogeneity and Diameter of Minimal Strict Nash Networks in Two-way Flow Model: A Note

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