• Mathematics
  • Published 2012

Identi…cation and Estimation of Network Formation Games

  title={Identi…cation and Estimation of Network Formation Games},
  author={Shuyang Sheng},
Social and economic networks play an important role in shaping individual behaviors. In this paper, we aim to identify and estimate network formation games using observed data on network structure, i.e., who is linked with whom. We use pairwise stability, introduced by Jackson and Wolinsky (1996), as the equilibrium condition to map observed networks to model primitives. Because the fraction of unique equilibria is close to zero, the model is generally not identi…ed. We leave the equilibrium… CONTINUE READING

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