Efficient Networks in Models with Player and Partner Heterogeneity

19 Pages Posted: 14 Dec 2017

Date Written: January 2018

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.

Suggested Citation

Unlu, Emre, Efficient Networks in Models with Player and Partner Heterogeneity (January 2018). The Manchester School, Vol. 86, Issue 1, pp. 100-118, 2018, Available at SSRN: https://ssrn.com/abstract=3086904 or http://dx.doi.org/10.1111/manc.12196

Emre Unlu (Contact Author)

Edge Hill University ( email )

St. Helens Road
Ormskirk, Lancashire, L39 4QP
United Kingdom

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