Nestedness in Networks: A Theoretical Model and Some Applications
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Author / Producer
Date
2014
Publication Type
Journal Article
ETH Bibliography
yes
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Abstract
We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents' centrality and have an exponentially distributed lifetime. We use stochastic stability to identify the networks to which the network formation process converges and find that they are nested split graphs. We completely determine the topological properties of the stochastically stable networks and show that they match features exhibited by real-world networks. Using four different network data sets, we empirically test our model and show that it fits well the observed networks.
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Publication status
published
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Book title
Journal / series
Volume
9 (3)
Pages / Article No.
695 - 752
Publisher
Econometric Society
Event
Edition / version
Methods
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Date collected
Date created
Subject
Nestedness; Bonacich centrality; Network formation; Nested split graphs; A14; C63; D85
Organisational unit
03682 - Schweitzer, Frank (emeritus) / Schweitzer, Frank (emeritus)