One-way flow network formation under constraints

  1. Norma Olaizola 1
  2. Federico Valenciano 1
  1. 1 Universidad del País Vasco UPV/EHU, España
Revista:
Top

ISSN: 1863-8279 1134-5764

Año de publicación: 2014

Volumen: 22

Número: 2

Páginas: 624-643

Tipo: Artículo

Otras publicaciones en: Top

Resumen

We study the effects of institutional constraints on stability and efficiency in the “one-way flow” model of network formation. In this model the information that flows through a link between two players runs only towards the player that initiates and supports the link, so in order for it to flow in both directions, both players must pay whatever the unit cost of a directional link is. We assume that an exogenous “societal cover” consisting of a collection of possibly overlapping subsets covering the set of players specifies the social organization in different groups or “societies,” so that a player may initiate links only with players that belong to at least one society that he/she also belongs to, thus restricting the feasible strategies and networks. In this setting, we examine the impact of such societal constraints on stable/efficient architectures and on dynamics.

Información de financiación

Acknowledgements We gratefully acknowledge the contribution of two anonymous referees whose comments allowed us to improve considerably this paper. This research is supported by the Spanish Min-isterio de Economía y Competitividad under projects ECO2012-31626 and ECO2012-31346. Both authors also benefit from the Departamento de Educación, Política Lingüística y Cultura of the Basque Government’s funding to Grupos Consolidados IT869-13 and IT568-13.

Financiadores

    • ECO2012-31626