Making a Swap: Network Formation with Increasing Marginal Costs.

I propose a general theory of strategic network formation based on increasing marginal linking costs and vertical heterogeneity among the players. In the spirit of revealed preference, I describe the entire set of graphs that can be stable, without making any parametric assumptions about players' pr...

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Detalles Bibliográficos
Publicado en:Journal of Political Economy Vol. 134; no. 8; pp. 2362 - 2395
Autor principal: Sadler, Evan
Formato: Artículo
Publicado: University of Chicago Press Aug2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Making a Swap: Network Formation with Increasing Marginal Costs.
      aug:
        au: Sadler, Evan
        affil: Columbia University
      su:
        Social network theory
        Heterogeneity
        Computer networks
        Marginal pricing
        Clustering algorithms
        Graph theory
      sug:
        subj:
          Social network theory
          Heterogeneity
          Computer networks
          Computer Systems Design Services
          Marginal pricing
          Clustering algorithms
          Graph theory
      ab: I propose a general theory of strategic network formation based on increasing marginal linking costs and vertical heterogeneity among the players. In the spirit of revealed preference, I describe the entire set of graphs that can be stable, without making any parametric assumptions about players' preferences. Stable graphs feature assortativity and clustering, and I highlight conditions that lead to hierarchies and cliquish behavior. Extensions shed light on which findings are robust and which are more fragile. Collectively, these results map interpretable properties of preferences to particular network structures and furnish new tools to study strategic network formation.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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