We propose a new class of game-theoretic models for network formation in which strategies are not directly related to edge choices, but instead correspond more generally to the exertion of social effort. This differs from existing models in both formulation and results: the observed social network is a byproduct of a more expressive strategic interaction, which can more naturally explain the emergence of complex social structures. Within this framework, we present a natural network formation game in which agent utilities are locally defined and that, despite its simplicity, nevertheless produces a rich class of equilibria that exhibit structural properties commonly observed in social networks
Christian Borgs, Jennifer T. Chayes, Jian Ding, Br