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Knowledge flows and the geography of networks : a strategic model of small world formation

[journal article]

Carayol, Nicolas; Roux, Pascale

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-286076

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Abstract "This paper aims to demonstrate that the strategic approach to link formation can generate networks that share some of the main structural properties of most real social networks. For this purpose, we introduce a spatialized variation of the Connections model (Jackson and Wolinsky 1996) to describe the strategic formation of links by agents who balance the benefits of forming links resulting from imperfect knowledge flows against their costs, which increase with geographic distance. We show, for intermediate levels of knowledge transferability, clustering occurs in geographical space and a few agents sustain distant connections. Such networks exhibit the small world property (high clustering and short average relational distances). When the costs of link formation are normally distributed across agents, asymmetric degree distributions are also obtained." [author's abstract]
Classification Methods and Techniques of Data Collection and Data Analysis, Statistical Methods, Computer Methods; Basic Research, General Concepts and History of Economics
Free Keywords Strategic network formation; Time-inhomogeneous process; Knowledge flows; Small worlds; Monte Carlo simulations
Document language English
Publication Year 2009
Page/Pages p. 414-427
Journal Journal of Economic Behavior & Organization, 71 (2009) 2
DOI http://dx.doi.org/10.1016/j.jebo.2009.02.005
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)