Role of Local Festivals on Network Formation among a Variety of Residents in a Community

Community activities, such as local festivals, which get residents to collaborate with each other, can enable them to start interacting with others whom they have never interacted with before. This is because festivals exist in a context that is independent of daily jobs or hobbies of residents. This study develops a social network model with the assumption that (i) each player´s knowledge and experience is endogenously determined through a network and (ii) players have various preferences for the heterogeneity of this knowledge and experience. We carry out numerical simulations to illustrate the dynamic process of interaction among players. Furthermore, we investigate the dynamic effect of exogenous link addition by festivals on network formation and utility of each player, and evaluate the value of festivals.