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2020 | OriginalPaper | Buchkapitel

A DEA-Based Network Formation Model. Micro and Macro Analysis

verfasst von : Claudio Pinto

Erschienen in: Challenges in Social Network Research

Verlag: Springer International Publishing

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Abstract

Empirical literature shows that networks occupy an important place in a variety of economic phenomena. The first segment of related research considers the network as a date and then studies its phenomena, while the second deals with how and why networks are formed. The current study falls into this second vein and proposes a network formation model based on DEA. This work exploits the DEA methodology as a process generating relational data. In other words, the relational variable, which is the empirical basis of a network, is generated within a DEA model. In this work, a strategic economic model is developed in which the usefulness of the agents depend exclusively on direct links and their formation depends unilaterally on the decision of a single agent within the dyad. From the statistical point of view, we will propose an independent dyad model in which each dyad has a dichotomous state. We will then go on to define equilibrium as couple stability for the DEA-based network. Finally, we will conduct a micro and macro analysis of the network, estimate an ERGM based on our proposed statistical model, and compare the properties of some standard statistical models with those of our DEA-based network based on simulations.

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Fußnoten
1
McFadden and Manski [60, 61] modeled a discrete choice problem for a single agent using a random utility model (RUMs). These models offer a way to infer the distribution of preferences from the observed distribution of choices. Unfortunately, as is familiar from the literature on game theory, the choice of agents is interdependent, as can be the case with network formation.
 
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Metadaten
Titel
A DEA-Based Network Formation Model. Micro and Macro Analysis
verfasst von
Claudio Pinto
Copyright-Jahr
2020
DOI
https://doi.org/10.1007/978-3-030-31463-7_7