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The Insider-Outsider Model Reexamined

Author

Listed:
  • Pascal Billand

    (Gate Lyon-Saint-Etienne, University Jean Monnet, Saint-Etienne, 42023 Cedex 02, France)

  • Christophe Bravard

    (Gate Lyon-Saint-Etienne, University Jean Monnet, Saint-Etienne, 42023 Cedex 02, France)

  • Sudipta Sarangi

    (DIW Berlin and Department of Economics, Louisiana State University, Baton Rouge, LA 70803, USA)

Abstract

In this note we introduce different levels of decay in the Goyal, Galeotti and Kamphorst (GGK) insider-outsider model of network formation. First, we deal with situations where the amount of decay is sufficiently low to avoid superfluous connections in strict Nash networks and we examine the architectures of strict Nash networks. We show that centrality and small diameter are robust features of strict Nash networks. Then, we study the Nash and efficient networks when the decay vanishes.

Suggested Citation

  • Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2010. "The Insider-Outsider Model Reexamined," Games, MDPI, vol. 1(4), pages 1-16, October.
    • Handle: RePEc:gam:jgames:v:1:y:2010:i:4:p:422-437:d:9940
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    References listed on IDEAS

    as
    1. Galeotti, Andrea & Goyal, Sanjeev & Kamphorst, Jurjen, 2006. "Network formation with heterogeneous players," Games and Economic Behavior, Elsevier, vol. 54(2), pages 353-372, February.
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    Cited by:

    1. Pietro Battiston, 2016. "Constrained Network Formation," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(3), pages 347-362, November.
    2. Banchongsan Charoensook, 2022. "A Characterization of Nonminimal Nash Networks in Two-way Flow Model," Annals of Economics and Finance, Society for AEF, vol. 23(2), pages 329-340, November.
    3. Charoensook, Banchongsan, 2015. "On the Interaction between Player Heterogeneity and Partner Heterogeneity in Strict Nash Networks," MPRA Paper 61205, University Library of Munich, Germany.
    4. Banchongsan Charoensook, 2019. "On the Interaction between Small Decay, Agent Heterogeneity and Diameter of Minimal Strict Nash Networks in Two-way Flow Model: A Note," Working Papers 2019.20, Fondazione Eni Enrico Mattei.
    5. Banchongsan Charoensook, 2020. "On the Interaction between Small Decay, Agent Heterogeneity and Diameter of Minimal Strict Nash Networks in Two-way Flow Model," Annals of Economics and Finance, Society for AEF, vol. 21(2), pages 331-361, November.
    6. Haller, Hans, 2012. "Network extension," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 166-172.
    7. 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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