Homophily in Indian Social Networks: A Model of Signed Network Formation
30 Pages Posted: 19 Jan 2019
Date Written: January 7, 2019
This paper explores possible theoretical underpinnings for homophily in signed social networks, particularly in the Indian context. The model of signed network formation proposed here considers a population which is divided into communities or identity groups that are hierarchically arranged in terms of social power and ownership/control of social resources. An agent's "intrinsic strength" refers to their control over resources by virtue of belonging to a community. This, along with the intrinsic strengths of one's positively tied neighbours, determines an agent's "coercive power". The structure of inter and intra community ties is studied in Nash equilibria in a setting where agents extract payoffs from their negatively tied neighbours with lower coercive power.
Keywords: social networks, signed networks, homophily, game theory
JEL Classification: D85, C70
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