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One-way flow networks: the role of heterogeneity

Galeotti, Andrea (2006) 'One-way flow networks: the role of heterogeneity.' Economic Theory, 29 (1). pp. 163-179. ISSN 0938-2259

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I study a one-way flow connections model in which players are heterogeneous with respect to values and the costs of establishing a link. I show that values and costs heterogeneity are equally important in determining the level of connectedness and the architecture of equilibrium networks. I also show that when asymmetries are independent of the potential partner there are distributions of costs and values for which centrality is a distincitive feature of equilibrium networks. This sharply contrasts with the homogeneous case.

Item Type: Article
Uncontrolled Keywords: network formation; heterogeneity
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 16 Jul 2012 14:33
Last Modified: 15 Jan 2022 00:26

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