Group representation concerns and network formation

Isabel Melguizo

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies processes of integration and segregation using a connections model in which individuals form valuable links that also entail a cost. Individuals belong to two different groups and care about whether their own group represents a sufficient fraction in their neighborhood. Concerns for representation promote the segregation of societies as even for small linking costs individuals do not link to different others because of the threat that their group become under-represented. For certain cost ranges, concerns for representation also determine efficient networks because forming links with members of the opposite group entails a utility loss due to under-representation.

Keywords: integration; segregation; representation concerns; homophily; welfare; pairwise stability (search for similar items in EconPapers)
JEL-codes: D6 D85 Z13 (search for similar items in EconPapers)
Date: 2022-02-08, Revised 2022-05-08
New Economics Papers: this item is included in nep-cdm, nep-gth, nep-net and nep-upt
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Journal Article: Group representation concerns and network formation (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:115172

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