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Constitutions and social networks

Author

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  • MAULEON, Ana

    (CEREC, Saint Louis University; Université catholique de Louvain, CORE, Belgium)

  • ROEHL, Nils

    (Department of Economics, University of Paderborn; BiGSEM, Bielefeld University, Germany)

  • VANNETELBOSCH, Vincent

    (CEREC, Saint Louis University; Université catholique de Louvain, CORE, Belgium)

Abstract

The objective of the paper is to analyze the formation of social networks where individuals are allowed to engage in several groups at the same time. These group structures are interpreted here as social networks. Each group is supposed to have specific rules or constitutions governing which members may join or leave it. Given these constitutions, we consider a social network to be stable if no group is modified any more. We provide requirements on constitutions and players’ preferences under which stable social networks are induced for sure. Furthermore, by embedding many-to-many matchings into our setting, we apply our model to job markets with labor unions. To some extent the unions may provide job guarantees and, therefore, have influence on the stability of the job market.

Suggested Citation

  • MAULEON, Ana & ROEHL, Nils & VANNETELBOSCH, Vincent, 2014. "Constitutions and social networks," LIDAM Discussion Papers CORE 2014003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2014003
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    1. TELHA, Claudio & VAN VYVE, Matthieu, 2014. "Efficient approximation algorithms for the economic lot-sizing in continuous time," LIDAM Discussion Papers CORE 2014016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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    More about this item

    Keywords

    social networks; constitutions; stability; many-to-many matchings;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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