### Abstract

Original language | English |
---|---|

Pages (from-to) | 215-226 |

Journal | Games and Economic Behavior |

Volume | 73 |

Issue number | 1 |

Publication status | Published - 2011 |

### Fingerprint

### Cite this

*Games and Economic Behavior*,

*73*(1), 215-226.

}

*Games and Economic Behavior*, vol. 73, no. 1, pp. 215-226.

**Inequality and network structure.** / Kets, W.; Iyengar, G.; Sethi, R.; Bowles, S.

Research output: Contribution to journal › Article › Scientific › peer-review

TY - JOUR

T1 - Inequality and network structure

AU - Kets, W.

AU - Iyengar, G.

AU - Sethi, R.

AU - Bowles, S.

N1 - Appeared earlier as CentER Discussion Paper 2008-76

PY - 2011

Y1 - 2011

N2 - 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.

AB - 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.

M3 - Article

VL - 73

SP - 215

EP - 226

JO - Games and Economic Behavior

JF - Games and Economic Behavior

SN - 0899-8256

IS - 1

ER -