Endogenous multiplex networks

Sumit Joshi, Ahmed Saber Mahmud and Hector Tzavellas

Journal of Economic Behavior & Organization, 2025, vol. 237, issue C

Abstract: Agents are typically connected in a multiplex of interrelated networks (layers). Given an initial asymmetric “seed” layer endowed with a nested split graph topology, we characterize the architecture of connections that bind agents in each layer of a multiplex. We propose a sequential multiplex formation game in which agents are free to choose layers and partners. Adding/deleting links on any layer generates intra-layer externalities within that layer and inter-layer externalities across other layers. The inter-layer externality transmitted from one layer to another is positive (negative) if actions on the two layers are strategic complements (substitutes). The flow of intra-layer and inter-layer externalities produce a limit multiplex in which non-seed layers that are complements (substitutes) of the seed inherit nested split graph topologies that are parallel (flip) of the seed in the sense that high-centrality agents in the seed layer occupy high (low) centrality positions in the non-seed layer. This result is shown to hold across duplexes, triplexes, and a sub-class of higher dimensional multiplexes. A number of applications are also discussed.

Keywords: Bonacich centrality; Multiplex; Nested split graphs; Network formation; Strategic complementarity and substitutability (search for similar items in EconPapers)
JEL-codes: C72 D85 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:237:y:2025:i:c:s0167268125003117

DOI: 10.1016/j.jebo.2025.107192

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