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'Collective Innovation’ in a Model of Network Formation with Preferential Meeting

In: Nonlinear Dynamics and Heterogeneous Interacting Agents

Author

Listed:
  • Nicolas Carayol

    (Université Louis Pasteur)

  • Pascale Roux

    (Université de Toulouse 1, Manufacture des Tabacs)

Abstract

Summary In this paper, we present a model of ‘collective innovation’ building upon the network formation formalism introduced by Jackson and Wolinski (1996) and Jackson and Watts (2002). Agents localized on a circle benefit from knowledge flows from some others with whom they are directly or indirectly connected. They also face costs for direct connections which are linearly increasing with geographical distance separating them. The dynamic process of network formation departs from available literature in that it exhibits preferential meetings for agents close to each other. As our main result, we provide a characterisation of the set of stochastically stable networks selected in the long run. Their architectures are compared to the ones obtained in the simple ‘connections model'. Our main result is to show under what circumstances pairwise stable “small worlds” networks are stochastically selected.

Suggested Citation

  • Nicolas Carayol & Pascale Roux, 2005. "'Collective Innovation’ in a Model of Network Formation with Preferential Meeting," Lecture Notes in Economics and Mathematical Systems, in: Thomas Lux & Eleni Samanidou & Stefan Reitz (ed.), Nonlinear Dynamics and Heterogeneous Interacting Agents, pages 139-153, Springer.
    • Handle: RePEc:spr:lnechp:978-3-540-27296-0_10
    DOI: 10.1007/3-540-27296-8_10
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    Cited by:

    1. Ivan D. Breslavsky, 2017. "Effect of Intellectual Property Policy on the Speed of Technological Advancement," Papers 1706.04518, arXiv.org.
    2. Pedro Campos & Pavel Brazdil & Isabel Mota, 2013. "Comparing Strategies of Collaborative Networks for R&D: An Agent-Based Study," Computational Economics, Springer;Society for Computational Economics, vol. 42(1), pages 1-22, June.
    3. Dotan Persitz, 2009. "Power in the Heterogeneous Connections Model: The Emergence of Core-Periphery Networks," Working Papers 2009.42, Fondazione Eni Enrico Mattei.
    4. Somayeh Koohborfardhaghighi & Jörn Altmann, 2015. "A Network Formation Model for Social Object Networks," Springer Books, in: Zhenji Zhang & Zuojun Max Shen & Juliang Zhang & Runtong Zhang (ed.), Liss 2014, edition 127, pages 615-625, Springer.

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