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

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.