An Agent Based Simulation for Network Formation with Heterogeneous Agents

We investigate an asymmetric connections model with a dynamic network formation process, using an agent based simulation. We permit heterogeneity of agents- value. Valuable persons seem to have many links on real social networks. We focus on this point of view, and examine whether valuable agents change the structures of the terminal networks. Simulation reveals that valuable agents diversify the terminal networks. We can not find evidence that valuable agents increase the possibility that star networks survive the dynamic process. We find that valuable agents disperse the degrees of agents in each terminal network on an average.

Authors:

• Hisashi Kojima
• Masatora Daito

Keywords:

• network formation
• agent based simulation
• connections model.

References:

[1] Daito, M. and H. Kojima (2011) "A Dynamic Analysis for Social
Network Formation under Symmetric Situation," Journal of Okayama
Shoka University, 47, forthcoming.
[2] Freeman, L. C. (1978) "Centrality in Social Networks: Conceptual
Clarification," Social Networks, 1, 215-239.
[3] Galeotti, A., S. Goyal, and J. Kamphorst (2006) "Network Formation
with Heterogeneous Players," Games and Economic Behavior, 54, 353-
372.
[4] Granovetter, M. (1973) "The Strength of Weak Ties,"American Journal
of Sociology, 78, 1360-1380.
[5] ÔÇöÔÇö [1974](1995) Getting a Job: A Study of Contacts and Careers, 2nd
edition, University of Chicago Press, Chicago.
[6] Jackson, M.O. and A. Wolinsky (1996) "A Strategic Model of Social
and Economic Networks,"Journal of Economic Theory, 71, 44-74.
[7] Watts, A. (2001) "A Dynamic Model of Network Formation,"Games
and Economic Behavior, 34, 331-341.