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arXiv · 2510.10997

The Strength of Local Structures in Decentralized Network Formation

Jose M. Betancourt
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Abstract

I study dynamic network formation games in which agents meet stochastically and form links based on their valuation of the network. I show that these games can be represented in terms of the values agents assign to network sub-structures. Particularly, this characterizes potential games as those where all participants in a structure value it equally. When valuations are restricted to a finite set of repeated sub-structures, or motifs, the model exhibits phase transitions: small changes in motif values cause discontinuous shifts in network density.

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Jose M. Betancourt. 2025-10-13. The Strength of Local Structures in Decentralized Network Formation. https://arxiv.org/abs/2510.10997

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