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Formation of flower networks with endogenous information benet from connections

Laurent, Thibault and Panova, Elena (2020) Formation of flower networks with endogenous information benet from connections. TSE Working Paper, n. 20-1147, Toulouse

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Various social networks share prominent features: clustering, rightskewed degree distribution, segregation into densely connected com-
munities. We build network formation game rationalizing these features with signal-extraction benet by network participants. The
players build network to exchange their private signals on the relevant
state. We show that a family of Nash equilibrium networks possesses
the above-mentioned prominent features of real networks. We show, furthermore, that networks with these features are e¢ cient.

Item Type: Monograph (Working Paper)
Language: English
Date: September 2020
Place of Publication: Toulouse
Uncontrolled Keywords: network formation, endogenous information benet, clustering, hubs, differentiated priors, Bayesian learning in networks.
JEL Classification: C72 - Noncooperative Games
D82 - Asymmetric and Private Information
D85 - Network Formation and Analysis - Theory
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 29 Sep 2020 08:27
Last Modified: 29 Sep 2020 08:27
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