Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74184
Authors: 
Dogan, Gönül
van Assen, M.A.L.M.
van de Rijt, Arnout
Buskens, Vincent
Year of Publication: 
2007
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 66.2007
Abstract: 
This paper develops a formal model of exchange network stability that combines expected value theory (Friedkin 1995) with the economic literature on network dynamics. We identify stable networks up to size 8 for varying costs and investigate whether they are Pareto efficient and egalitarian. Only a very small number of networks are stable. Odd cycles and networks consisting of dyads and at most one isolate are the only egalitarian, efficient, and stable networks for a large cost range. We show that some of these results are generalizable to networks of any size and are independent of using expected value theory.
Subjects: 
Exchange Networks
Stability
Efficiency
Equity
Social Dilemma
JEL: 
D85
Document Type: 
Working Paper

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