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Discussion Paper Details

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Title: From Assortative to Dissortative Networks: The Role of Capacity Constraints

Author(s): Michael König, Claudio J. Tessone and Yves Zenou

Publication Date: October 2010

Keyword(s): Bonacich centrality, nested split graphs, network formation and social interactions

Programme Area(s): Industrial Organization

Abstract: We consider a dynamic model of network formation where agents form and sever links based on the centrality of their potential partners. We show that the existence of capacity constrains in the amount of links an agent can maintain introduces a transition from dissortative to assortative networks. This effect can shed light on the distinction between technological and social networks as it gives a simple mechanism explaining how and why this transition occurs.

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Bibliographic Reference

König, M, Tessone, C and Zenou, Y. 2010. 'From Assortative to Dissortative Networks: The Role of Capacity Constraints'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8052