Random networks form through independent and random connections between nodes, as modeled by the Erdos-Renyi random graph model. Strategic networks form through intentional connections between nodes based on factors like preferential attachment, costs and benefits, and pairwise stability, as modeled by the Barabasi-Albert and Jackson-Wolinsky models. These models aim to explain how real-world networks form through either random or strategic connection formation and display properties like short path lengths, clustering, and characteristic degree distributions. Pairwise stability and efficiency concepts help analyze when network configurations become stable and maximize utilities under different costs.