Arbeitspapier
Risk Aversion and Social Networks
Agents involved in the formation of a social or economic network typically face uncertainty about the benefits of creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation literature. We propose a dynamic network formation model that builds on standard microeconomic concepts of utility maximization, incomplete information, and risk aversion. The model predicts that an agent's risk aversion is correlated with her network clustering coefficients, but not with her degree. We discover a mechanism that generates a correlation between network position and payoffs of individuals. Moreover, we show how the generated network architecture depends on the uncertainty in the environment it is embedded in.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. 11-072/1
- Klassifikation
-
Wirtschaft
Network Formation and Analysis: Theory
Criteria for Decision-Making under Risk and Uncertainty
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- Thema
-
Network formation
risk aversion
clustering coefficient
local/global search
Risikoaversion
Soziales Netzwerk
Entscheidung bei Risiko
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kovarik, Jaromir
van der Leij, Marco J.
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Kovarik, Jaromir
- van der Leij, Marco J.
- Tinbergen Institute
Entstanden
- 2011
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