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Behavioral Foundations And Equilibrium Notions For Social Network Formation Processes

Author

Listed:
  • NICOLAS CARAYOL

    (BETA (UMR CNRS 7522), Université Louis Pasteur, 61, avenue de la Forêt Noire, F-67085 Strasbourg Cedex, France)

  • PASCALE ROUX

    (LEREPS-GRES, Université de Toulouse 1, Manufacture des Tabacs, 21 Allée de Brienne, F-31000 Toulouse, France)

Abstract

This paper develops a framework for studying social network formation. Partly built upon a formalism used in theoretical economics, the network formation process we introduce is locally driven by agents who maximize a given individual payoff function. We examine two simple models and observe the limiting distributions of stochastically stable networks. We find that these networks share some of the features observed for social networks. In particular, we find critical values of the parameters for which the selected networks exhibit small world properties.

Suggested Citation

  • Nicolas Carayol & Pascale Roux, 2004. "Behavioral Foundations And Equilibrium Notions For Social Network Formation Processes," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 77-92.
    • Handle: RePEc:wsi:acsxxx:v:07:y:2004:i:01:n:s021952590400007x
    DOI: 10.1142/S021952590400007X
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    Cited by:

    1. Carayol, Nicolas & Roux, Pascale, 2009. "Knowledge flows and the geography of networks: A strategic model of small world formation," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 414-427, August.
    2. Carayol, Nicolas & Roux, Pascale & YIldIzoGlu, Murat, 2008. "Inefficiencies in a model of spatial networks formation with positive externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 495-511, August.
    3. Nicolas Carayol & Pascale Roux & Murat Yıldızoğlu, 2008. "In search of efficient network structures: the needle in the haystack," Review of Economic Design, Springer;Society for Economic Design, vol. 11(4), pages 339-359, February.

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