Zenou, Yves; König, Michael D.; Tessone, Claudio J. - In: Theoretical Economics 9 (2014) 3, pp. 695-752
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 … completely determine the topological properties of the stochastically stable networks and show that they match features exhibited …