We extend the well-known and widely used Exponential Random Graph Model
(ERGM) by including nodal random effects to compensate for heterogeneity in the
nodes of a network. The Bayesian framework for ERGMs proposed by Caimo and
Friel (2011) yields the basis of our modelling algorithm. A central question in
network models is the question of model selection and following the Bayesian
paradigm we focus on estimating Bayes factors. To do so we develop an
approximate but feasible calculation of the Bayes factor which allows one to
pursue model selection. Two data examples and a small simulation study
illustrate our mixed model approach and the corresponding model selection.Comment: 23 pages, 9 figures, 3 table