  Polarization is a well-documented phenomenon across a wide range of social
issues. However, prevailing theories often compartmentalize the examination of
herding behavior and opinion convergence within different contexts. In this
study, we delve into the micro-foundations of how individuals strategically
select reference groups, offering insight into a dynamic process where both
individual opinions and the network evolve simultaneously. We base our model on
two parameters: people's direct benefit from connections and their adaptability
in adjusting their opinions. Our research highlights which conditions impede
the network from achieving complete connectivity, resulting in enduring
polarization. Notably, our model also reveals that polarization can transiently
emerge during the transition towards consensus. We explore the connection
between these scenarios and a critical network metric: the initial diameter,
under specific conditions related to the initial distribution of opinions.
