Endogenous Link Strength in Directed Communication Networks

Frédéric Deroïan (1)

1 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille

We present a model of communication network formation in which links'strengths are endogenously determined by individual incentives. Agents are endowed with a fixed amount of resource which they can distribute as they want in directed links. Individuals capture benefits from both direct and indirect access to others, in a way that takes into account the strength of each link. The wheel architecture is shown to be the unique efficient and stable architecture under mild restriction.

Mots clés: Directed Communication Network; Endogenous Link Strength; Efficiency; Stability

Domaines: Economies et finances

Frédéric Deroïan. Endogenous Link Strength in Directed Communication Networks. 2006. ⟨halshs-00410544⟩