Endogenous Link Strength in Directed Communication Networks

Frédéric Deroïan ()

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Abstract: We present a model of communication network formation in which links'strengths are endogenously determined by individual incentives. Agents are endowed with a fixed amount of resource which they can distribute as they want in directed links. Individuals capture benefits from both direct and indirect access to others, in a way that takes into account the strength of each link. The wheel architecture is shown to be the unique efficient and stable architecture under mild restriction.

Keywords: Directed Communication Network; Endogenous Link Strength; Efficiency; Stability (search for similar items in EconPapers)
Date: 2006
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Related works:
Journal Article: Endogenous link strength in directed communication networks (2009)
Working Paper: Endogenous link strength in directed communication networks (2009)
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