Network Formation with Closeness Incentives

Buechel Berno ()
Additional contact information
Buechel Berno: Institute of Mathematical Economics, Economic Behavior and Interaction Models
Authors registered in the RePEc Author Service: Berno Büchel

A chapter in Networks, Topology and Dynamics, 2009, pp 95-109 from Springer

Abstract: Closeness centrality is an index that has been widely used to assess the strength of an agent's position in a network of relationships. We study the formation of networks in a strategic setting, where every agent tries to optimize his closeness centrality. We investigate how the curvature of the benefit function (decreasing vs. increasing marginal returns) affects the set of stable networks and compare the results to the well-known connections model of Jackson and Wolinsky (JET 71, 1996). It turns out that our model can “replicate” the connections model in the sense that each result is translatable from one model into the other and the sets of stable networks coincide for certain specifications. We conclude that the two models incorporate the same kind of linking behavior and that grouping these “closeness-type” models means a first step in organizing network formation models by the type of incentives.

Keywords: Marginal Cost; Network Formation; Marginal Return; Structural Hole; Closeness Centrality (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Network formation with closeness incentives (2011)
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:spr:lnechp:978-3-540-68409-1_4

Ordering information: This item can be ordered from
http://www.springer.com/9783540684091

DOI: 10.1007/978-3-540-68409-1_4

Access Statistics for this chapter

More chapters in Lecture Notes in Economics and Mathematical Systems from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().