Nestedness in Networks: A Theoretical Model and Some Applications


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Date

2014

Publication Type

Journal Article

ETH Bibliography

yes

Citations

Altmetric

Data

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.

Publication status

published

Editor

Book title

Volume

9 (3)

Pages / Article No.

695 - 752

Publisher

Econometric Society

Event

Edition / version

Methods

Software

Geographic location

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) check_circle

Notes

Funding

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