• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Models of random networks
        • Bernoulli random graphs
        • Clustering and Markov graphs
        • Small worlds
        • Degree distributions
      • Strategic models of network formation
        • Pairwise stability
        • A connections model of social networks
        • Inefficiency of stable networks
        • Small worlds and strategic network formation
        • Networks and markets
    • See Also
    • Bibliography
    • How to cite this article

network formation

Matthew O. Jackson
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

A brief introduction and overview of models of the formation of networks is given, with a focus on two types of model. The first views networks as arising stochastically, and uses random graph theory, while the second views the links in a network as social or economic relationships chosen by the involved parties, and uses game theoretic reasoning.
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Keywords

clustering; degree distributions; graph theory; Myerson value; network formation; pairwise stability; random graphs; small worlds
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Article

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How to cite this article

Jackson, Matthew O. "network formation." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 25 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_N000135> doi:10.1057/9780230226203.1174

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