Population invariance properties of social and economic networks

Youngsub Chun, Sunghoon Hong, Bong Chan Koh

Research output: Contribution to journalArticlepeer-review

Abstract

This paper investigates how a pairwise stable network changes upon the arrival of a new agent. Comparing the new networks obtained for the society after the arrival of a new agent with the initially pairwise stable network, we propose four different population invariance properties of a network: link invariance, distance invariance, connectedness invariance, and network invariance. We show that pairwise stability is incompatible with link invariance under certain assumptions on the allocation rule. However, if we consider specific models, positive results can be obtained. For instance, in the symmetric connections model, pairwise stability implies connectedness invariance.

Original languageEnglish
Pages (from-to)255-267
Number of pages13
JournalInternational Journal of Economic Theory
Volume13
Issue number3
DOIs
StatePublished - Sep 2017

Keywords

  • invariance property
  • network formation
  • pairwise stability
  • variable population

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