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On the Tension Between Stability and Efficiency in Two-Way Flow Network with Small Decay

Banchongsan Charoensook

Economics and Applied Informatics2025https://doi.org/10.35219/eai15840409496article
ABDC C
Weight
0.50

What the paper says

The tension between stability and efficiency in network formation models refers to a common finding in the literature of social networks: equilibrium networks and efficient networks often exhibit substantially different characteristics.In this note, I show that this tension can be partially reconciled in the two-way flow model of network formation with partner heterogeneity by introducing a small degree of information decay.This result extends a similar finding established for homogeneous agents in Charoensook (2025).Thus, this note contributes to the literature by demonstrating that the reconciliation of stability and efficiency through a small decay assumption is not confined to models with agent homogeneity but also holds in more general network settings.

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https://doi.org/https://doi.org/10.35219/eai15840409496

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@article{banchongsan2025,
  title        = {{On the Tension Between Stability and Efficiency in Two-Way Flow Network with Small Decay}},
  author       = {Banchongsan Charoensook},
  journal      = {Economics and Applied Informatics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.35219/eai15840409496},
}

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On the Tension Between Stability and Efficiency in Two-Way Flow Network with Small Decay

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.