Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197127
Authors: 
Hiller, Timo
Year of Publication: 
2017
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 12 [Year:] 2017 [Issue:] 3 [Pages:] 1057-1087
Abstract: 
I propose a simple model of signed network formation, where agents make friends to extract payoffs from weaker enemies. The model thereby accounts for the interplay between friendship and alliance on one hand and enmity and antagonism on the other. Nash equilibrium configurations are such that either everyone is friends with everyone or agents can be partitioned into different sets, where agents within the same set are friends and agents in different sets are enemies. Any strong Nash equilibrium must be such that a single agent is in an antagonistic relationship with everyone else. Furthermore, I show that Nash equilibria cannot be Pareto ranked. This paper offers a game-theoretic foundation for a large body of work on signed networks, called structural balance theory, which has been studied in sociology, social psychology, bullying, international relations, and applied physics. The paper also contributes to the literature on contests and economics of conflict.
Subjects: 
Signed network formation
structural balance
contest success function
bullying
economics of conflict
international relations
JEL: 
D74
D85
F51
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/4.0/
Document Type: 
Article

Files in This Item:
File
Size
414.53 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.