Continuous homophily and clustering in random networks

Gauer F, Landwehr J (2016) Center for Mathematical Economics Working Papers; 515, Version August 2016.
Bielefeld: Center for Mathematical Economics.

Download
OA 6.19 MB
Working Paper | Published | English
Abstract
We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than equality by assuming that the probability of linkage between two agents continuously decreases in the distance of their characteristics. A homophily parameter directly determines the strength of this effect. As a main result, we show that for any positive level of homophily our model exhibits clustering, that is an increased probability of linkage given a common neighbor. As opposed to this, the seminal Bernoulli Random Graph model à la Erdős and Rényi (1959) is comprised as the limit case of no homophily. Moreover, simulations indicate that, although the average distance between agents increases in homophily, the well-known small-world phenomenon is preserved even at high homophily levels. We finally provide a possible application in form of a stylized labor market model, where a firm can hire a new employee via the social network.
Publishing Year
ISSN
PUB-ID

Cite this

Gauer F, Landwehr J. Continuous homophily and clustering in random networks. Center for Mathematical Economics Working Papers. Vol 515 Version August 2016. Bielefeld: Center for Mathematical Economics; 2016.
Gauer, F., & Landwehr, J. (2016). Continuous homophily and clustering in random networks (Center for Mathematical Economics Working Papers, 515) Version August 2016. Bielefeld: Center for Mathematical Economics.
Gauer, F., and Landwehr, J. (2016). Continuous homophily and clustering in random networks. Center for Mathematical Economics Working Papers, 515, Version August 2016. Bielefeld: Center for Mathematical Economics.
Gauer, F., & Landwehr, J., 2016. Continuous homophily and clustering in random networks, Center for Mathematical Economics Working Papers, no.515, Version August 2016., Bielefeld: Center for Mathematical Economics.
F. Gauer and J. Landwehr, Continuous homophily and clustering in random networks, Center for Mathematical Economics Working Papers, vol. 515, Version August 2016., Bielefeld: Center for Mathematical Economics, 2016.
Gauer, F., Landwehr, J.: Continuous homophily and clustering in random networks. Center for Mathematical Economics Working Papers, 515, Version August 2016. Center for Mathematical Economics, Bielefeld (2016).
Gauer, Florian, and Landwehr, Jakob. Continuous homophily and clustering in random networks. Version August 2016. Bielefeld: Center for Mathematical Economics, 2016. Center for Mathematical Economics Working Papers. 515.
All files available under the following license(s):
Copyright Statement:
This Item is protected by copyright and/or related rights. [...]
Main File(s)
Access Level
OA Open Access
Last Uploaded
2016-10-05T11:48:27Z

This data publication is cited in the following publications:
This publication cites the following data publications:

Export

0 Marked Publications

Open Data PUB

Search this title in

Google Scholar