One-way flow networks: the role of heterogeneity

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.