On the Interaction between Heterogeneity and Decay in Two-way Flow Models

Pascal Billand, Christophe Bravard () and Sudipta Sarangi
Additional contact information
Christophe Bravard: Université de Lyon, Lyon, F-69007, France ; Université Jean Monnet, Saint-Etienne, F-42000, France ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France

No 1109, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: In this paper we examine the role played by heterogeneity in the popular “connections model” of Jackson and Wolinsky (1996). We prove that under heterogeneity in values or decay involving only two degrees of freedom, all networks can supported as Nash. Moreover, we show that Nash networks may not always exist. In the absence of decay, neither result can be found in a model with value heterogeneity. Finally, we show that on reducing heterogeneity, both the earlier “anything goes” result and the non-existence problem disappear.

Keywords: connections model; decay; two-way flow models (search for similar items in EconPapers)
JEL-codes: C72 D85 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://ftp.gate.cnrs.fr/RePEc/2011/1109.pdf (application/pdf)

Related works:
Journal Article: On the interaction between heterogeneity and decay in two-way flow models (2012)
Working Paper: On the Interaction between Heterogeneity and Decay in Two-way Flow Models (2012)
Working Paper: On the Interaction between Heterogeneity and Decay in Two-way Flow Models (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:gat:wpaper:1109

Access Statistics for this paper

More papers in Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon Contact information at EDIRC.
Bibliographic data for series maintained by Nelly Wirth ( this e-mail address is bad, please contact ).