The agents' preferences and the topology of networks

Abstract

In this paper, a new framework to study weighed networks is introduced. The idea behind this methodology is to consider that each node of the network is an agent that desires to satisfy his/her preferences in an economic sense. Moreover, the formation of a link between two agents depends on the benefits and costs associated to this link. Therefore, an edge between two given nodes will only arise if the tradeoff between satisfaction and cost for building it is jointly positive. Using a computational framework, I intend to show that depending on the agents combination of benefits and costs, some very well known networks can naturally arise.