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Revisiting Friendship Networks

Author

Listed:
  • Aditi Roy

    (Southern Methodist University)

  • Sudipta Sarangi

    (DIW Berlin and Louisiana State University)

Abstract

We extend the model of friendship networks developed by Brueckner (2006) in two ways. First, we extend the level of indirect benefits by incorporating benefits from up to three links and explore its implication for the socially optimal and individual effort levels. Next, we generalize the magnetic agent problem by allowing for more than 3 players by restricting ourselves to regular networks that include payoffs from the magnetic agent.

Suggested Citation

  • Aditi Roy & Sudipta Sarangi, 2009. "Revisiting Friendship Networks," Economics Bulletin, AccessEcon, vol. 29(4), pages 2640-2647.
    • Handle: RePEc:ebl:ecbull:eb-09-00401
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P16.pdf
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    References listed on IDEAS

    as
    1. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    2. Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September.
    3. Jan K. Brueckner, 2006. "Friendship Networks," Journal of Regional Science, Wiley Blackwell, vol. 46(5), pages 847-865, December.
    4. Bloch, Francis & Dutta, Bhaskar, 2009. "Communication networks with endogenous link strength," Games and Economic Behavior, Elsevier, vol. 66(1), pages 39-56, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jacques Durieu & Hans Haller & Philippe Solal, 2011. "Nonspecific Networking," Games, MDPI, vol. 2(1), pages 1-27, February.
    2. Billand, Pascal & Bravard, Christophe & Joshi, Sumit & Mahmud, Ahmed Saber & Sarangi, Sudipta, 2023. "A model of the formation of multilayer networks," Journal of Economic Theory, Elsevier, vol. 213(C).
    3. Quqiong He & Sudipta Sarangi & Zhengjia Sun, 2019. "A Note On Asymmetries In Friendship Networks," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(03), pages 799-811, June.

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    More about this item

    Keywords

    Social networks; Endogenous effort; Magnetic agent;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

    Statistics

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