A strategic model of complex networks formation

Nicolas Carayol () and Pascale Roux ()

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg

Abstract: This paper introduces a spatialized variation of the Connections model of Jackson and Wolinski (1996). Agents benefit from their direct and indirect connections in a communication network. They are arranged on a circle and bear costs for maintaining direct connections which are linearly increasing with geographic distance. In a dynamic setting, this model is shown to generate networks that exhibit the small world properties shared by many real social and economic networks.

Keywords: Strategic Network Formation; Pairwise Stability; Small World; Monte Carlo. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gth, nep-net and nep-soc
Date: 2006
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Persistent link: http://EconPapers.repec.org/RePEc:ulp:sbbeta:2006-02

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