Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43794
Authors: 
Buechel, Berno
Year of Publication: 
2007
Series/Report no.: 
Working papers // Institute of Mathematical Economics 395
Abstract: 
We study network formation in a strategic setting where every agent strives for short paths to the other agents. The main parameter of our model is the marginal rate of substitution between network benefits and linking costs. We provide boundaries of stable networks for increasing and decreasing marginal returns. The formulated model stands in strong relation to the famous connections model (Jackson & Wolinsky '96): we show that for certain parameter values both models induce the same network structures.
Subjects: 
Networks
Closeness centrality
Connections
Decreasing returns
Increasing returns
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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