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

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

Banchongsan Charoensook (Contact Author)

Keimyung University ( email )

Dalseo-Gu, Daegu 704-701
Korea, Republic of (South Korea)

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