TY  - GEN
AB  - We develop a modification of the connections model by Jackson and Wolinsky (1996)
that takes into account negative externalities arising from the connectivity of direct and indirect
neighbors, thus combining aspects of the connections model and the co-author model. We consider
a general functional form for agents’ utility that incorporates both the effects of distance and of
neighbors’ degree. Consequently, we introduce a framework that can be seen as a degree-distancebased
connections model with both negative and positive externalities. Our analysis shows how
the introduction of negative externalities modifies certain results about stability and efficiency
compared to the original connections model. In particular, we see the emergence of new stable
structures, such as a star with links between peripheral nodes. We also identify structures, for
example, certain disconnected networks, that are efficient in our model but which could not be
efficient in the original connections model. While our results are proved for the general utility
function, some of them are illustrated by using a specific functional form of the degree-distancebased
utility.
DA  - 2013
DO  - 10.4119/unibi/2915402
KW  - connections model
KW  - degree
KW  - distance
KW  - negative externalities
KW  - positive externalities
KW  - pairwise stability
KW  - efficiency
LA  - eng
PY  - 2013
SN  - 2196-2723
SP  - 29-
TI  - A degree-distance-based connections model with negative and positive externalities
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29154026
Y2  - 2024-11-22T05:05:55
ER  -