Matching Dynamics with Constraints

We study uncoordinated matching markets with additional local constraints that capture, e.g., restricted information, visibility, or externalities in markets. Each agent is a node in a fixed matching network and strives to be matched to another agent. Each agent has a complete preference list over all other agents it can be matched with. However, depending on the constraints and the current state of the game, not all possible partners are available for matching at all times. For correlated preferences, we propose and study a general class of hedonic coalition formation games that we call coalition formation games with constraints. This class includes and extends many recently studied variants of stable matching, such as locally stable matching, socially stable matching, or friendship matching. Perhaps surprisingly, we show that all these variants are encompassed in a class of "consistent" instances that always allow a polynomial improvement sequence to a stable state. In addition, we show that for consistent instances there always exists a polynomial sequence to every reachable state. Our characterization is tight in the sense that we provide exponential lower bounds when each of the requirements for consistency is violated. We also analyze matching with uncorrelated preferences, where we obtain a larger variety of results. While socially stable matching always allows a polynomial sequence to a stable state, for other classes different additional assumptions are sufficient to guarantee the same results. For the problem of reaching a given stable state, we show NP-hardness in almost all considered classes of matching games.Comment: Conference Version in WINE 201

Linguistic Harbingers of Betrayal: A Case Study on an Online Strategy Game

Interpersonal relations are fickle, with close friendships often dissolving into enmity. In this work, we explore linguistic cues that presage such transitions by studying dyadic interactions in an online strategy game where players form alliances and break those alliances through betrayal. We characterize friendships that are unlikely to last and examine temporal patterns that foretell betrayal. We reveal that subtle signs of imminent betrayal are encoded in the conversational patterns of the dyad, even if the victim is not aware of the relationship's fate. In particular, we find that lasting friendships exhibit a form of balance that manifests itself through language. In contrast, sudden changes in the balance of certain conversational attributes---such as positive sentiment, politeness, or focus on future planning---signal impending betrayal.Comment: To appear at ACL 2015. 10pp, 4 fig. Data and other info available at http://vene.ro/betrayal

Risk Pooling, Risk preferences, and Social Networks

Using date from a field experiment conducted in seventy Colombian municipalities, we investigate who pools risk with whom when risk pooling arrangements are not formally enforced. We explore the roles played by risk attitudes and network connections both theoretically and empirically. We find that pairs of participants who share a bond of friendship or kinship are more likely to (1) join the same risk pooling group and to (2) group assortatively with respect to risk attitudes. Also, consistent with our theoretical finding that when there is a problem of trust the process of pooling assortativley with respect to risk preferences is perturbed, we find (3) only weak evidence of such assorting among unfamiliar individuals.Field experiment; risk sharing; social sanctions; Insurance; Group formation: matching.

Large scale homophily analysis in twitter using a twixonomy

In this paper we perform a large-scale homophily analysis on Twitter using a hierarchical representation of users' interests which we call a Twixonomy. In order to build a population, community, or single-user Twixonomy we first associate "topical" friends in users' friendship lists (i.e. friends representing an interest rather than a social relation between peers) with Wikipedia categories. A wordsense disambiguation algorithm is used to select the appropriate wikipage for each topical friend. Starting from the set of wikipages representing "primitive" interests, we extract all paths connecting these pages with topmost Wikipedia category nodes, and we then prune the resulting graph G efficiently so as to induce a direct acyclic graph. This graph is the Twixonomy. Then, to analyze homophily, we compare different methods to detect communities in a peer friends Twitter network, and then for each community we compute the degree of homophily on the basis of a measure of pairwise semantic similarity. We show that the Twixonomy provides a means for describing users' interests in a compact and readable way and allows for a fine-grained homophily analysis. Furthermore, we show that midlow level categories in the Twixonomy represent the best balance between informativeness and compactness of the representation

Stochastic network formation and homophily

This is a chapter of the forthcoming Oxford Handbook on the Economics of Networks