A Game Theoretical Analysis of Heterogeneous Network Formation

Thursday, July 17, 2014
Room: 511
Masayoshi MUTO , Faculty of Systems Engineering and Sciences, Shibaura Institute of Technology, Saitama-City, Japan
Shiro HORIUCHI , Yamagata University, Japan
Makoto ASAOKA , Center of Statistics and Information, RIKKYO University, Toshima-ku, Japan
Jackson and Wolinsky (1996) using information value is a typical game theoretical model to explain network formation, however they assume homogeneous actors while real world actors are various. Real world actors choose their friend homophilically, then they form diverse communities. Actors are often familiar to each other in one of these communities inside, but they tend to have no relations mutually on inter-community. This kind of  communities are often called Takotsubo (octopus pots) in Japanese. Moreover ranking and inequality often arise in such a community. However few game theoretical models explain the community formations. Therefore, I propose a new approach to these models.