Arbeitspapier

Continuous Homophily and Clustering in Random Networks

to connected objects

We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than equality of agents. We show that if links between similar agents are indeed more likely, our homophilous random network model exhibits clustering. Moreover, simulations indicate that the well-known small-world phenomenon is preserved even at high homophily levels. As a possible application we provide a stylized labor market model, where a firm can hire a worker via the social network.

Language: Englisch

Bibliographic citation: Series: Center for Mathematical Economics Working Papers ; No. 515

Classification: Wirtschaft
Network Formation and Analysis: Theory
Unemployment: Models, Duration, Incidence, and Job Search
Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

Subject: Random Graphs
Homophily
Clustering
Small-World Phenomenon
Network Formation
Labor Market Search

Event: Geistige Schöpfung

(who): Gauer, Florian
Landwehr, Jakob

Event: Veröffentlichung

(who): Bielefeld University, Center for Mathematical Economics (IMW)

(where): Bielefeld

(when): 2014

Handle: http://hdl.handle.net/10419/103935

Last update: 10.03.2025, 11:46 AM CET

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Object type

Arbeitspapier

Associated

Gauer, Florian
Landwehr, Jakob
Bielefeld University, Center for Mathematical Economics (IMW)

Time of origin

2014

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