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Homophily in Indian Social Networks: A Model of Signed Network Formation

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Abstract: This paper explores possible theoretical underpinnings for homophily in signed social networks, particularly in the Indian context. The model of signed network formation proposed here considers a population which is divided into communities or identity groups that are hierarchically arranged in terms of social power and ownership control of social resources. An agent s "intrinsic strength " refers to their control over resources by virtue of belonging to a community. This, along with the intrinsic strengths of one s positively tied neighbours, determines an agent s "coercive power ". The structure of inter and intra community ties is studied in Nash equilibria in a setting where agents extract payoffs from their negatively tied neighbours with lower coercive power.

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