{"title":"A pairwise strategic network formation model with group heterogeneity: With an application to international travel","authors":"Tadao Hoshino","doi":"10.1017/nws.2022.16","DOIUrl":null,"url":null,"abstract":"Abstract This study considers a network formation model in which each dyad of agents strategically determines the link status. Our model allows the agents to have unobserved group heterogeneity in the propensity of link formation. For the model estimation, we propose a three-step maximum likelihood method, in which the latent group structure is estimated using the binary segmentation algorithm in the second step. As an empirical illustration, we focus on the network data of international visa-free travels. The results indicate the presence of significant strategic complementarity and a certain level of degree heterogeneity in the network formation behavior.","PeriodicalId":51827,"journal":{"name":"Network Science","volume":null,"pages":null},"PeriodicalIF":1.4000,"publicationDate":"2020-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Network Science","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1017/nws.2022.16","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"SOCIAL SCIENCES, INTERDISCIPLINARY","Score":null,"Total":0}
引用次数: 1
Abstract
Abstract This study considers a network formation model in which each dyad of agents strategically determines the link status. Our model allows the agents to have unobserved group heterogeneity in the propensity of link formation. For the model estimation, we propose a three-step maximum likelihood method, in which the latent group structure is estimated using the binary segmentation algorithm in the second step. As an empirical illustration, we focus on the network data of international visa-free travels. The results indicate the presence of significant strategic complementarity and a certain level of degree heterogeneity in the network formation behavior.
期刊介绍:
Network Science is an important journal for an important discipline - one using the network paradigm, focusing on actors and relational linkages, to inform research, methodology, and applications from many fields across the natural, social, engineering and informational sciences. Given growing understanding of the interconnectedness and globalization of the world, network methods are an increasingly recognized way to research aspects of modern society along with the individuals, organizations, and other actors within it. The discipline is ready for a comprehensive journal, open to papers from all relevant areas. Network Science is a defining work, shaping this discipline. The journal welcomes contributions from researchers in all areas working on network theory, methods, and data.