Utility and dynamic social networks

A dynamic process model of utility maximizing social actors embedded within social networks is developed. Actors make social choices under four combinations of tie formation and deletion rules: unilateral and mutual tie formation, and unilateral and mutual tie deletion. Ties are dual valued, parameterized with both a benefit and a cost. A utility function is used to assess the structurally determined utility of an actor's position in the social network. The process generates eight types of networks: Null. near-Null, Star, near-Star, Shared, near-Shared, Complete, near-Complete. Agent-based simulation modeling is the basic methodology used in these analyses. Two types of simulation models were developed: a multi-thread "real time" model, and a discrete event model. (C) 2000 Elsevier Science B.V. All rights reserved.