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Under-connected and over-connected networks

Buechel B, Hellmann T (2008)
IMW working papers, Bielefeld: Universität Bielefeld.
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Working Paper | Published | English
 
Authors
;
Department
Institut für mathematische Wirtschaftsforschung
Abstract

Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between individual strategic behavior and collective outcome. What has not been studied systematically are the sources of inefficiency. We approach this gap by analyzing the role of positive and negative externalities of link formation. We find general results that relate situations of positive externalities with stable networks that cannot be "too dense" in a well-defined sense, while situations with negative externalities, tend to induce "too dense" networks.

Keywords
Spillovers ; Externalities ; Game theory ; Connections ; Networks ; Network formation ; Stability ; Efficiency
Year
2008
ISSN
0931-6558
File Name
400.pdf 324.70 KB
Access Level
Open Access
 
This data publication is cited in the following publications:
This publication cites the following data publications:
 
Buechel B, Hellmann T. Under-connected and over-connected networks. IMW working papers. Bielefeld: Universität Bielefeld; 2008.
Buechel, B., & Hellmann, T. (2008). Under-connected and over-connected networks (IMW working papers) . Bielefeld: Universität Bielefeld.
Buechel, B., and Hellmann, T. (2008). Under-connected and over-connected networks. IMW working papers, Bielefeld: Universität Bielefeld.
Buechel, B., & Hellmann, T., 2008. Under-connected and over-connected networks, IMW working papers, Bielefeld: Universität Bielefeld.
B. Buechel and T. Hellmann, Under-connected and over-connected networks, IMW working papers, Bielefeld: Universität Bielefeld, 2008.
Buechel, B., Hellmann, T.: Under-connected and over-connected networks. IMW working papers. Universität Bielefeld, Bielefeld (2008).
Buechel, Berno, and Hellmann, Tim. Under-connected and over-connected networks. Bielefeld: Universität Bielefeld, 2008. IMW working papers.
@misc{2315804,
  abstract     = {Since the seminal contribution of Jackson \& Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between individual strategic behavior and collective outcome. What has not been studied systematically are the sources of inefficiency. We approach this gap by analyzing the role of positive and negative externalities of link formation. We find general results that relate situations of positive externalities with stable networks that cannot be {\textacutedbl}too dense{\textacutedbl} in a well-defined sense, while situations with negative externalities, tend to induce {\textacutedbl}too dense{\textacutedbl} networks.},
  author       = {Buechel, Berno and Hellmann, Tim},
  issn         = {0931-6558},
  language     = {English},
  number       = {400},
  publisher    = {Universit{\"a}t Bielefeld},
  title        = {Under-connected and over-connected networks},
  url          = {http://www.imw.uni-bielefeld.de/papers/files/imw-wp-400.pdf},
  year         = {2008},
}

TY  - GEN
AB  - Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between individual strategic behavior and collective outcome. What has not been studied systematically are the sources of inefficiency. We approach this gap by analyzing the role of positive and negative externalities of link formation. We find general results that relate situations of positive externalities with stable networks that cannot be "too dense" in a well-defined sense, while situations with negative externalities, tend to induce "too dense" networks.
AU  - Buechel, Berno
AU  - Hellmann, Tim
ID  - 2315804
IS  - 400
KW  - Spillovers
KW  - Externalities
KW  - Game theory
KW  - Connections
KW  - Networks
KW  - Network formation
KW  - Stability
KW  - Efficiency
PB  - Universität Bielefeld
PY  - 2008
SN  - 0931-6558
TI  - Under-connected and over-connected networks
U3  - PUB:ID 2315804
UR  - http://nbn-resolving.de/urn:nbn:de:hbz:361-13569
ER  - 
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