Gauer, Florian; Landwehr, Jakob - Institut für Mathematische Wirtschaftsforschung, … - 2014
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 …