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Inequality and network structure

Abstract:
We explore the manner in which the structure of a social network constrains the level of inequality that can be sustained among its members, based on the following considerations: (i) any distribution of value must be stable with respect to coalitional deviations, and (ii) the network structure itself determines the coalitions that may form. We show that if players can jointly deviate only if they form a clique in the network, then the degree of inequality that can be sustained depends on the cardinality of the maximum independent set. For bipartite networks, the size of the maximum independent set fully characterizes the degree of inequality that can be sustained. This result extends partially to general networks and to the case in which a group of players can deviate jointly if they are all sufficiently close to each other in the network.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1016/j.geb.2010.12.007

Authors

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Oxford college:
Queen's College
Role:
Author
ORCID:
0000-0002-4914-9426


Publisher:
Elsevier
Journal:
Games and Economic Behavior More from this journal
Volume:
73
Issue:
1
Pages:
215-226
Publication date:
2011-01-12
Acceptance date:
2011-01-07
Event start date:
2008
DOI:
EISSN:
1090-2473
ISSN:
0899-8256


Language:
English
Keywords:
Pubs id:
728160
Local pid:
pubs:728160
Deposit date:
2021-04-22
ARK identifier:

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