FEEM working papers "Note di lavoro"
Date: 17/10/2016

Nodewise Decay in Two-way Flow Nash Network: a Study of Network Congestion

Banchongsan Charoensook (Keimyung Adams College - Keimyung University)
JEL n.: C72, D85
Keywords: Two-way Flow Network, Network Formation, Information Network


This paper studies a noncooperative model of network formation. Built upon the two-way flow model of Bala and Goyal (2000a), it assumes that information decay as it flows through each agent, and the decay is increasing and concave in the number of his links. This assumption results in the fact that a large set of Nash networks are disconnected and consist of components of different sizes, a feature that resembles that of real-world networks. Discussions on this insight are provided.


Suggested citation: Charoensook, B., (2016), 'Nodewise Decay in Two-way Flow Nash Network: a Study of Network Congestion', Nota di Lavoro 65.2016, Milan, Italy: Fondazione Eni Enrico Mattei

Download file
Download PDF file

FEEM Newsletter & Update

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter & Update. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree