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A Note On Asymmetries In Friendship Networks

Author

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  • QUQIONG HE

    (School of Economics and the Center for Econometric Analysis and Forecasting, Dongbei University of Finance and Economics, China)

  • SUDIPTA SARANGI

    (#x2020;Virginia Tech, Blacksburg VA 24061-0316 and DIW Berlin, 10117 Berlin, Germany)

  • ZHENGJIA SUN

    (#x2021;Louisiana State University, Baton Rouge LA 70803, USA)

Abstract

We generalize the analysis of Brueckner’s [(2006). Friendship networks. Journal of Regional Science, 847–865] friendship networks under different types of asymmetries. We first study cost asymmetries by allowing for cost-magnetic agents. These are players whose linking costs are the lowest. Next we focus on network-based asymmetries by allowing for knows-everyone agents. We identify conditions under which Nash networks are interlinked stars in both these cases. We also find that for asymmetric situations (whether in costs, values, or architectures), the equilibrium effort choices regarding the links between different types of agents are robust across the various friendship network models.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:serxxx:v:64:y:2019:i:03:n:s0217590816500351
    DOI: 10.1142/S0217590816500351
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    References listed on IDEAS

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    1. Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2010. "The Insider-Outsider Model Reexamined," Games, MDPI, vol. 1(4), pages 1-16, October.
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