Communication network formation with link specificity and value transferability

M.J.W. Harmsen - van Hout, P.J.J. Herings, B.G.C. Dellaert

Research output: Contribution to journalArticleAcademicpeer-review

3 Citations (Scopus)

Abstract

We model strategic communication network formation with (i) link specificity: link maintenance lowers specific attention and thus value (negative externality previously ignored for communication) and (ii) value transferability via indirect links for informational but not for social value (positive externality modeled uniformly before). Assuming only social value, the pairwise stable set includes many nonstandard networks under high and particular combinations of complete components under low link specificity. Allowing for social and informational value reduces this set to certain fragmented networks under high and the complete network under low link specificity. These extremes are efficient, whereas intermediate link specificity generates inefficiency.
Original languageEnglish
Pages (from-to)199-211
Number of pages13
JournalEuropean Journal of Operational Research
Volume229
Issue number1
DOIs
Publication statusPublished - 16 Aug 2013

Keywords

  • Bilateral communication links
  • Link specificity
  • Value transferability
  • Social vs. informational value
  • Strategic network formation
  • SOCIAL NETWORKS
  • TOPOLOGIES
  • EVOLUTION
  • MODEL

Cite this