Nodewise Decay in Two-way Flow Nash Network: a Study of Network Congestion

This paper studies a noncooperative model of network formation. Built upon the two-way flow model of Bala and Goyal (2000a), it assumes that information decay as it flows through each agent, and the decay is increasing and concave in the number of his links. This assumption results in the fact that a large set of Nash networks are disconnected and consist of components of different sizes, a feature that resembles that of real-world networks. Discussions on this insight are provided.


Issue Date:
Nov 04 2016
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/249353
Total Pages:
27
JEL Codes:
C72; D85
Series Statement:
ET
65.2016




 Record created 2017-04-01, last modified 2017-11-13

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