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

[journal article]

Carayol, Nicolas
Roux, Pascale

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 ... view more

"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]... view less

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
https://doi.org/10.1016/j.jebo.2009.02.005

Status
Postprint; peer reviewed

Licence
PEER Licence Agreement (applicable only to documents from PEER project)


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© 2007 - 2025 Social Science Open Access Repository (SSOAR).
Based on DSpace, Copyright (c) 2002-2022, DuraSpace. All rights reserved.