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

Pascal Billand, Christophe Bravard () and Sudipta Sarangi
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Christophe Bravard: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique

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Abstract: In this paper we examine the role played by heterogeneity in the popular "connections model" of Jackson andWolinsky (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)
Date: 2011
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00574258v1
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Published in 2011

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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)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00574258

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