一类经济网络的效用.docVIP

  The Utility of A Class of Economic Network# Xu Lan1, Xu Ying2* (1. Mathematics Department of Changji University, XinJiang ChangJi 831100; 5 10 15 20 25 30 2. Depart of Applied Mathematics Xinjiang University of Finance and Economic,Urumqi 830012) Abstract: Networks play an important role in a wide range of economic phenomena. Despite this fact, standard economic theory rarely considers economic networks explicitly in its analysis. However, a major innovation in economic theory has been the use of methods stemming from graph theory to describe and study relations between economic agents in networks. This recent development has lead to a fast increase in theoretical research on economic networks. In this paper, we consider the utility of a class of economic network. Keywords: Utility; Economic Network; Spectral radius 0 Introduction Networks are ubiquitous in social and economic phenomena. The use of methods from graph theory has allowed economic network theory to improve our understanding of those economic phenomena in which the embeddedness of individuals in their social inter-relations cannot be neglected. In social and economic settings the choice of forming a link or not is governed by individual incentives and the potential benefits versus costs that arise from the establishment or withdrawal from a relationship. Strategic network formation thus constitute strategic settings in which the payoffs of agents are interdependent and this interdependency is rooted in a network structure. If we want to model network formation based on individual incentives then we first need to introduce a utility function that describes the net benefits an agent enjoys from being part of the network. In the Connections Model introduced in Jackson and Wolinsky [1] agents receive information from others to whom they are connected to. Through these links they also receive information from those agents that they are indirectly connected to, that is, through the neighbors of their n