Efficient Network Structures with Separable Heterogeneous Connection Costs

Babak Heydari, Mohsen Mosleh and Kia Dalili

MPRA Paper from University Library of Munich, Germany

Abstract: We introduce a heterogeneous connection model for network formation to capture the effect of cost heterogeneity on the structure of efficient networks. In the proposed model, connection costs are assumed to be separable, which means the total connection cost for each agent is uniquely proportional to its degree. For these sets of networks, we provide the analytical solution for the efficient network and discuss stability implications. We show that the efficient network exhibits a core-periphery structure, and for a given density, we find a lower bound for clustering coefficient of the efficient network.

Keywords: Complex Networks; Connection Model; Efficient networks; Distance-based utility; Core-periphery; Pairwise Stability (search for similar items in EconPapers)
JEL-codes: D85 (search for similar items in EconPapers)
Date: 2015-05-27
New Economics Papers: this item is included in nep-net, nep-ore and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/63968/1/1504.06634v1.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/65477/1/MPRA_paper_65477.pdf revised version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:63968

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().