DP8052 From Assortative to Dissortative Networks: The Role of Capacity Constraints

• Yves Zenou Michael Koenig Claudio J. Tessone
23 Oct 2010

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.