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On the Interaction between Heterogeneity and Decay in Directed Networks

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  • Sudipta Sarangi
  • Pascal Billand
  • Christophe Bravard

Abstract

In this paper, we examine the role played by heterogeneity in the connection model. In sharp contrast to the homogeneous cases we show that under heterogeneity involving only two degrees of freedom, all networks can be supported as Nash or efficient. Moreover, we show that there does not always exist Nash networks. However, we show that on reducing heterogeneity, both the earlier �anything goes� result and the non existence problem disappear.

Suggested Citation

  • Sudipta Sarangi & Pascal Billand & Christophe Bravard, 2010. "On the Interaction between Heterogeneity and Decay in Directed Networks," Departmental Working Papers 2010-04, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2010-04
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    File URL: https://www.lsu.edu/business/economics/files/workingpapers/pap10_04.pdf
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    Cited by:

    1. Pascal Billand & Christophe Bravard & Sudipta Sarangi & J. Kamphorst, 2011. "Confirming information flows in networks," Post-Print halshs-00672351, HAL.

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