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'Collective Innovation’ in a Model of Network Formation with Preferential Meeting

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Nonlinear Dynamics and Heterogeneous Interacting Agents

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 550))

Summary

In this paper, we present a model of ‘collective innovation’ building upon the network formation formalism introduced by Jackson and Wolinski (1996) and Jackson and Watts (2002). Agents localized on a circle benefit from knowledge flows from some others with whom they are directly or indirectly connected. They also face costs for direct connections which are linearly increasing with geographical distance separating them. The dynamic process of network formation departs from available literature in that it exhibits preferential meetings for agents close to each other. As our main result, we provide a characterisation of the set of stochastically stable networks selected in the long run. Their architectures are compared to the ones obtained in the simple ‘connections model'. Our main result is to show under what circumstances pairwise stable “small worlds” networks are stochastically selected.

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Author information

Authors and Affiliations

  1. BETA (UMR CNRS 7522), Université Louis Pasteur, 61, avenue de la Forêt Noire, F-67085, Strasbourg Cedex

    Nicolas Carayol

  2. LEREPS, Université de Toulouse 1, Manufacture des Tabacs, 21 Allée de Brienne, F-31000, Toulouse

    Pascale Roux

Authors
  1. Nicolas Carayol
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  2. Pascale Roux
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Editor information

Editors and Affiliations

  1. Department of Economics, University of Kiel, Olshausenstraße 40, 24118, Kiel, Germany

    Thomas Lux  & Eleni Samanidou  & 

  2. Department of Economics and Business Administration, University of Giessen, Licher Straße 66, 35394, Gießen, Germany

    Stefan Reitz

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© 2005 Springer-Verlag Berlin Heidelberg

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Carayol, N., Roux, P. (2005). 'Collective Innovation’ in a Model of Network Formation with Preferential Meeting. In: Lux, T., Samanidou, E., Reitz, S. (eds) Nonlinear Dynamics and Heterogeneous Interacting Agents. Lecture Notes in Economics and Mathematical Systems, vol 550. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-27296-8_10

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