Network formation with heterogeneous players

Andrea Galeotti, Sanjeev Goyal, Jurjen Kamphorst

Research output: Contribution to journalArticlepeer-review

Abstract

This paper extends the connections model of network formation by allowing for players who are heterogeneous with respect to values as well as the costs of forming links. Our principal result is that centrality and short average distances between individuals are robust features of equilibrium networks.

Original languageEnglish (US)
Pages (from-to)353-372
Number of pages20
JournalGames and Economic Behavior
Volume54
Issue number2
DOIs
StatePublished - Feb 2006

Keywords

  • Heterogeneity
  • Insider-outsider
  • Network
  • Non-cooperative game

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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