A Strategic Theory of Network Status

This paper studies environments where individuals allocate resources across relationships with others, creating a weighted, directed network. Value is achieved both through an exogenous factor and maintaining close connections to high-value individuals. We consider two cases corresponding to the direction benefits flow along links. In Model T (for "taking") agents receive benefits through the links they create, whereas in Model G (for "giving") the reverse is true: agents pass value along their links. Equilibrium and socially e