A pairwise strategic network formation model with group heterogeneity

With an application to international travel

Bibliographic Data

ID6161436
AuthorsTadao Hoshino (0000-0001-9484-2943, Waseda University, corresponding author)
Year2022
Volume10
Issue2
Pages170-189
Publication date2022-05-27
Open AccessYes
TypeARTICLE
VenueNetwork Science (JOURNAL)
Journal identifiersISSN: 2050-1250 • E-ISSN: 2050-1242
PublisherCambridge University Press (PUBLISHER • US)
DOI10.1017/nws.2022.16
OpenAlexW3116749528
LanguageEN
Citations received1
References cited10

This study considers a network formation model in which each dyad of agents strategically determines the link status. Our model allows the agents to have unobserved group heterogeneity in the propensity of link formation. For the model estimation, we propose a three-step maximum likelihood method, in which the latent group structure is estimated using the binary segmentation algorithm in the second step. As an empirical illustration, we focus on the network data of international visa-free travels. The results indicate the presence of significant strategic complementarity and a certain level of degree heterogeneity in the network formation behavior

Complementarity (molecular biology · Dyad · Econometrics · Group (periodic table · Group structure · Network formation · Pairwise comparison · Complex Network Analysis Techniques · Computer Science · Game Theory and Applications · Mathematics · Psychology · Regional Economics and Spatial Analysis · Social Psychology · Artificial Intelligence

Tools

Open DOIOpen Access