A Network Formation Model Based on Subgraphs

  title={A Network Formation Model Based on Subgraphs},
  author={Arun Chandrasekhar and Matthew O. Jackson},
  journal={Demand \& Supply in Health Economics eJournal},
We develop a new class of random-graph models for the statistical estimation of network formation that allow for substantial correlation in links. Various subgraphs (e.g., links, triangles, cliques, stars) are generated and their union results in a network. The challenge in estimating the frequencies with which subgraphs 'truly' form is that subgraphs can overlap and may also incidentally generate new subgraphs, and so the true rate of formation of the subgraphs cannot generally be inferred… 

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