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.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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Jackson, M.O. (2008). Network Formation. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_1984-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_1984-1
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