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Nestedness in networks: A theoretical model and some applications
Stockholm University, Faculty of Social Sciences, Department of Economics.
2014 (English)In: Theoretical Economics, ISSN 1933-6837, E-ISSN 1555-7561, Vol. 9, no 3, 695-752 p.Article in journal (Refereed) Published
Abstract [en]

We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents' centrality and have an exponentially distributed lifetime. We use stochastic stability to identify the networks to which the network formation process converges and find that they are nested split graphs. We completely determine the topological properties of the stochastically stable networks and show that they match features exhibited by real-world networks. Using four different network data sets, we empirically test our model and show that it fits well the observed networks.

Place, publisher, year, edition, pages
2014. Vol. 9, no 3, 695-752 p.
Keyword [en]
Nestedness, Bonacich centrality, network formation, nested split graphs, A14, C63, D85
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-109049DOI: 10.3982/TE1348ISI: 000342908500005OAI: oai:DiVA.org:su-109049DiVA: diva2:763472
Note

AuthorCount:3;

Available from: 2014-11-14 Created: 2014-11-10 Last updated: 2017-12-05Bibliographically approved

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