Under-connected and Over-connected Networks

Berno Buechel and Tim Hellmann
Authors registered in the RePEc Author Service: Berno Büchel

No 50728, Sustainable Development Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between individual strategic behavior and collective outcome. What has not been studied systematically are the sources of inefficiency. We approach this omission by analyzing the role of positive and negative externalities of link formation. This yields general results that relate situations of positive externalities with stable networks that cannot be “too dense” in a well-defined sense, while situations with negative externalities tend to induce “too dense” networks.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
Pages: 40
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/50728/files/38-09.pdf (application/pdf)

Related works:
Working Paper: Under-connected and Over-connected Networks (2009)
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:ags:feemdp:50728

DOI: 10.22004/ag.econ.50728

Access Statistics for this paper

More papers in Sustainable Development Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().