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Farsighted strategies in the formation of a communication network

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  • Deroian, Frederic

Abstract

I examine the formation of a specific communication network, a variant of the two-way flow model, in which agents have farsighted strategies. I show that the likelihood to form efficient networks tends to zero for sufficiently large network sizes.
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Suggested Citation

  • Deroian, Frederic, 2003. "Farsighted strategies in the formation of a communication network," Economics Letters, Elsevier, vol. 80(3), pages 343-349, September.
    • Handle: RePEc:eee:ecolet:v:80:y:2003:i:3:p:343-349
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    References listed on IDEAS

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    1. Kirman, Alan P & Oddou, Claude & Weber, Shlomo, 1986. "Stochastic Communication and Coalition Formation," Econometrica, Econometric Society, vol. 54(1), pages 129-138, January.
    2. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    3. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    4. Watts, Alison, 2002. "Non-myopic formation of circle networks," Economics Letters, Elsevier, vol. 74(2), pages 277-282, January.
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    Cited by:

    1. Galeotti, Andrea & Goyal, Sanjeev & Kamphorst, Jurjen, 2006. "Network formation with heterogeneous players," Games and Economic Behavior, Elsevier, vol. 54(2), pages 353-372, February.
    2. Joost Vandenbossche & Thomas Demuynck, 2013. "Network Formation with Heterogeneous Agents and Absolute Friction," Computational Economics, Springer;Society for Computational Economics, vol. 42(1), pages 23-45, June.
    3. Page, Frank Jr. & Wooders, Myrna H. & Kamat, Samir, 2005. "Networks and farsighted stability," Journal of Economic Theory, Elsevier, vol. 120(2), pages 257-269, February.
    4. Dev, Pritha, 2010. "Choosing `Me' and `My Friends': Identity in a Non-Cooperative Network Formation Game with Cost Sharing," MPRA Paper 21631, University Library of Munich, Germany.
    5. Page, Frank H., Jr. & Wooders, Myrna H. & Kamat, Samir, 2004. "Farsightedly Basic Networks," Economic Research Papers 269596, University of Warwick - Department of Economics.
    6. Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, University Library of Munich, Germany.
    7. Schuster, Stephan, 2012. "Applications in Agent-Based Computational Economics," MPRA Paper 47201, University Library of Munich, Germany.
    8. Schuster, Stephan, 2010. "Network Formation with Adaptive Agents," MPRA Paper 27388, University Library of Munich, Germany.
    9. Frédéric Deroïan, 2006. "Formation of a Communication Network Under Perfect Foresight," Theory and Decision, Springer, vol. 61(3), pages 191-204, November.
    10. Mahesh Nagarajan & Greys Sošić, 2009. "Coalition Stability in Assembly Models," Operations Research, INFORMS, vol. 57(1), pages 131-145, February.
    11. Dev, Pritha, 2010. "Identity and Fragmentation in Networks," MPRA Paper 21632, University Library of Munich, Germany.
    12. Yangbo Song & Mihaela Schaar, 2020. "Dynamic network formation with foresighted agents," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(2), pages 345-384, June.

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