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Friendship selection

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Abstract

We model the formation of friendships as repeated cooperation within a set of heterogeneous players. The model builds around three of the most important facts about friendship: friends help each other, there is reciprocity in the relationship and people usually have few friends. In our results we explain how similarity between people affects the friendship selection. We also characterize when the friendship network won’t depend on the random process by which people meet each other. Finally, we explore how players’ patience influences the length of their friendship relations. Our results match and explain empirical evidence reported in social studies on friendship. For instance, our model explains why troublesome subjects have few friends.
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  • Javier Rivas, 2009. "Friendship selection," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(4), pages 521-538, November.
    • Handle: RePEc:spr:jogath:v:38:y:2009:i:4:p:521-538
    DOI: 10.1007/s00182-009-0168-3
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    1. Spagnolo, Giancarlo & Lippert, Steffen, 2004. "Networks of Relations," SSE/EFI Working Paper Series in Economics and Finance 570, Stockholm School of Economics, revised 04 Jun 2010.
    2. 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.
    3. Jackson, Matthew O. & Watts, Alison, 2002. "On the formation of interaction networks in social coordination games," Games and Economic Behavior, Elsevier, vol. 41(2), pages 265-291, November.
    4. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    5. Lippert, Steffen & Spagnolo, Giancarlo, 2011. "Networks of relations and Word-of-Mouth Communication," Games and Economic Behavior, Elsevier, vol. 72(1), pages 202-217, May.
    6. Goyal, Sanjeev & Vega-Redondo, Fernando, 2005. "Network formation and social coordination," Games and Economic Behavior, Elsevier, vol. 50(2), pages 178-207, February.
    7. Michael Suk-Young Chwe, 2000. "Communication and Coordination in Social Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 1-16.
    8. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
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    Cited by:

    1. Miriam Al Lily, 2023. "Establishing human connections: experimental evidence from the helping game," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(3), pages 805-832, September.
    2. Gaudeul, Alexia & Giannetti, Caterina, 2011. "The role of reciprocation in social network formation, with an application to blogging," MPRA Paper 34094, University Library of Munich, Germany.

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    More about this item

    Keywords

    Friendship relations; Cooperative games; Grim trigger strategy; Social networks; C72; C73; Z13;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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