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In this work we study the coupled dynamics of social balance and opinionformation. We propose a model where agents form opinions under boundedconfidence, but only considering the opinions of their friends. The signs ofsocial ties -friendships and enmities- evolve seeking for social balance,taking into account how similar agents' opinions are. We consider both the casewhere opinions have one and two dimensions. We find that our dynamics producesthe segregation of agents into two cliques, with the opinions of agents in oneclique differing from those in the other. Depending on the level of boundedconfidence, the dynamics can produce either consensus of opinions within eachclique or the coexistence of several opinion clusters in a clique. For theuni-dimensional case, the opinions in one clique are all below the opinions inthe other clique, hence defining a "left clique" and a "right clique". In thetwo-dimensional case, our numerical results suggest that the two cliques areseparated by a hyperplane in the opinion space. We also show that thephenomenon of unidimensional opinions identified by DeMarzo, Vayanos andZwiebel (Q J Econ 2003) extends partially to our dynamics. Finally, in thecontext of politics, we comment about the possible relation of our results tothe fragmentation of an ideology and the emergence of new political parties.

Bounded Confidence under Preferential Flip: A Coupled Dynamics of Structural Balance and Opinions