eprintid: 48396 rev_number: 6 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/04/83/96 datestamp: 2023-11-22 08:38:37 lastmod: 2023-11-22 10:31:21 status_changed: 2023-11-22 08:38:37 type: monograph metadata_visibility: show creators_name: Bayer, Peter creators_idrefppn: 259789666 creators_affiliation: Toulouse School of Economics creators_halaffid: 1002422 title: Evolutionarily stable networks ispublished: pub subjects: subjects_ECO abstract: This paper studies the evolution of behavior governing strategic network formation. I first propose a general framework of evolutionary selection in non-cooperative games played in heterogeneous groups under assortative matching. I show that evolution selects strate-gies that (i) execute altruistic actions towards others in the interaction group with rate of altruism equal to the rate of assortative matching and (ii) are stable against pairwise coali-tional deviations under two qualifications: pairs successfully coordinate their deviations with probability equaling the rate of assortative matching and externalities are taken into account with the same weight. I then restrict the domain of interaction games to strategic network formation and define a new stability concept for networks called ‘evolutionarily stable networks’. The concept fuses ideas of solution concepts used by evolutionary game theory and network formation games. In a game of communication, evolutionarily stable networks prescribe equal information access. In the classic co-authorship game only the least efficient network, the complete network, is evolutionarily stable. Finally, I present an evolutionary model of homophilistic network formation between identity groups and show that extreme high degrees of homophily may persist even in groups with virtually no preference for it; thus societies may struggle to eliminate segregation between identity groups despite becoming increasingly tolerant. date: 2023-11 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/128722 faculty: tse divisions: tse keywords: Networks keywords: Evolution keywords: Relatedness keywords: Stability keywords: Homophily language: en has_fulltext: TRUE subjectsJEL: JEL_C73 subjectsJEL: JEL_D85 view_date_year: 2023 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 23-1487 place_of_pub: Toulouse institution: Université Toulouse Capitole department: Toulouse school of economics book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:128722 harvester_local_overwrite: creators_name harvester_local_overwrite: pending harvester_local_overwrite: keywords harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: creators_halaffid harvester_local_overwrite: department harvester_local_overwrite: place_of_pub harvester_local_overwrite: institution harvester_local_overwrite: creators_affiliation oai_lastmod: 2023-11-20T12:15:54Z oai_set: tse site: ut1 citation: Bayer, Peter (2023) Evolutionarily stable networks. TSE Working Paper, n. 23-1487, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/48396/1/wp_tse_1487.pdf