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《Systems Engineering》 2015-02
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The Impact of Partner Heterogeneity on the Efficient Network in the Connections Model

LIU Nian-ping;School of Economics and Management,Southwest Jiaotong University;  
This paper extends the connections model of network formation initiated by Jackson and Wolinsky(1996)by allowing for partner heterogeneity in which the model the formation of a link requires the consent of both players involved,but severance can be done unilaterally.And if there exists a link between player i and j,then players i pays a cost of cj and gets benefits of wj.Our main result consists of the characterization of efficient networks.Compared with homogeneous individuals,we find that partner heterogeneity plays a major role in increasing the scope and multiplicity of efficient networks.
【Fund】: 国家自然科学基金重大项目(71090402);国家自然科学基金资助项目(71771095)
【CateGory Index】: C912.1
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