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We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than … equality of agents. We show that if links between similar agents are indeed more likely, our homophilous random network model …
Persistent link: https://www.econbiz.de/10010379888
We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than … characteristics. A homophily parameter directly determines the strength of this effect. As a main result, we show that for any …
Persistent link: https://www.econbiz.de/10011296325
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We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are … identify the networks to which the network formation process converges and find that they are nested split graphs. We … by real-world networks. Using four different network datasets, we empirically test our model and show that it fits well …
Persistent link: https://www.econbiz.de/10011674190
that amount. The information that the nodes receive through the network is the revenue from investments in links. We prove … maximizing the aggregate profit, are still the all-encompassing star and the complete network, with the sole and rare exception … of a highly particular case where there is a draw between the allencompassing star, the complete network and a whole …
Persistent link: https://www.econbiz.de/10012293123
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