Nodewise Decay in Two-Way Flow Nash Network: A Study of Network Congestion
27 Pages Posted: 25 Oct 2016
Date Written: June 2016
Abstract
This paper studies a non-cooperative model of network formation. Built upon the two-way flow model of Bala and Goyal (2000a), it assumes that information decay as it flows through each agent, and the decay is increasing and concave in the number of his links. This assumption results in the fact that a large set of Nash networks are disconnected and consist of components of different sizes, a feature that resembles that of real-world networks. Discussions on this insight are provided.
Keywords: Two-way Flow Network, Network Formation, Information Network
JEL Classification: C72, D85
Suggested Citation: Suggested Citation
Charoensook, Banchongsan, Nodewise Decay in Two-Way Flow Nash Network: A Study of Network Congestion (June 2016). FEEM Working Paper No. 065.2016, Available at SSRN: https://ssrn.com/abstract=2858799 or http://dx.doi.org/10.2139/ssrn.2858799
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