A Simple Model of Increasing Access

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Remember that increasing access is analogous to improving Information Technology, or decreasing communication costs. In the graph below, we provide an example of how results from the previous society might look.

Clearly, as agents become more interconnected, Balkanization decreases. When all agents are connected to all other agents, BA is zero. However, the problem with this model is that there is no limit to how many interactions an agent can have. This is fine so long as there are only thirty people in society, but if we attempt to model an entire nation, the idea that someone could know all society members starts to sound absurd. The most generous estimates of how many people one can know only fall in the few thousands. Thus, in the general case, each agent only knows a miniscule portion of the population. Therefore, we must ask what happens when we place a restriction on how many connections an agent can form. We will do this on the next slide.

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