Strategic Random Networks: Why Social Networking Technology Matters

@article{Golub2010StrategicRN,
  title={Strategic Random Networks: Why Social Networking Technology Matters},
  author={Benjamin Golub and Yair Livne},
  journal={Economics of Networks eJournal},
  year={2010}
}
  • B. Golub, Yair Livne
  • Published 22 March 2010
  • Economics, Mathematics, Physics
  • Economics of Networks eJournal
This paper develops strategic foundations for an important statistical model of random networks with heterogeneous expected degrees. Based on this, we show how social networking services that subtly alter the costs and indirect benefits of relationships can cause large changes in behavior and welfare. In the model, agents who value friends and friends of friends choose how much to socialize, which increases the probabilities of links but is costly. There is a sharp transition from fragmented… Expand
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