Destabilizing segregation in friendship networks with farsighted agents

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2024
Volume: 221
Issue: C
Pages: 1-16

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a model of friendship network formation based on de Marti and Zenou (2017) where individuals belong to two different communities and costs of forming links depend on community memberships. Once there are myopic and farsighted individuals in both communities, many inefficient friendship networks such as segregation, partial integration or partial assimilation become destabilized. In the case of low intra-community costs, either (for high inter-community costs) the network where the smaller community ends up being assimilated into the dominant community or (for low inter-community costs) the network where both communities are fully integrated is both stable and strongly efficient. In the case of intermediate intra-community costs, star networks with a myopic individual in the center are both stable and strongly efficient.

Technical Details

RePEc Handle
repec:eee:jeborg:v:221:y:2024:i:c:p:1-16
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24