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Latest revision as of 01:59, 10 July 2024
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English | The insider-outsider model reexamined |
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The insider-outsider model reexamined (English)
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19 May 2015
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Summary: In this note we introduce different levels of decay in the Goyal, Galeotti and Kamphorst (GGK) insider-outsider model of network formation [\textit{A. Galeotti} et al., Games Econ. Behav. 54, No. 2, 353--372 (2006; Zbl 1125.91006)]. First, we deal with situations where the amount of decay is sufficiently low to avoid superfluous connections in strict Nash networks and we examine the architectures of strict Nash networks. We show that centrality and small diameter are robust features of strict Nash networks. Then, we study the Nash and efficient networks when the decay vanishes.
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two-way flow models
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Nash networks
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heterogeneity
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decay
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