Networks Webinar - Ana Mauleon
The Janeway Institute hosts the Networks Webinar Series which is organised by George Charlson, Sanjeev Goyal, Matt Elliott and Akhil Vohra.
On Friday 29th April 2022, 3.00pm - 4.00 pm, the speaker will be Ana Mauleon (UCLouvain Saint-Louis)
Ana's research interests are Game Theory, Bargaining Theory, Group Formation and Network Theory, Industrial Organization. See Ana's personal website for more information.
Paper: Segregation versus assimilation in friendship networks with farsighted and myopic agents, joint with Chenghong Luo and Vincent Vannetelbosch
We reconsider de Marti and Zenou (2017) model of friendship network formation where individuals belong to two different communities and costs of forming links depend on community memberships. Many inefficient friendship networks such as segregation can arise when all individuals are myopic. Once there are myopic and farsighted individuals in both communities, we show that if there are enough farsighted individuals in the dominant community relatively to the number of individuals in the small community and intra-community costs are small, then the friendship network where the smaller community ends up being assimilated into the dominant community is likely to emerge and is strongly and Pareto efficient. Moreover, this friendship network Pareto dominates the complete segregation network. When intra-community costs are intermediate, we show that if there are enough farsighted individuals, independently to which community they belong, then a star network with a myopic individual in the center is going to arise and is efficient.