Advanced Search
MyIDEAS: Login

Network extension

Contents:

Author Info

  • Haller, Hans
Registered author(s):

    Abstract

    In a model of strategic network formation, the endogenously formed network is built around a pre-existing network. We envisage that the pre-existing or core network is publicly provided. Strategic network formation is decentralized: Players act in their private interest and bear the costs when adding links to the pre-existing network. We study how the pre-existing network affects existence of Nash equilibria and efficiency of Nash equilibrium outcomes: It can foster or prohibit existence of Nash equilibria. It can improve or worsen equilibrium welfare. Special attention is paid to an insider–outsider model where society is partitioned into several groups and links within a group (between insiders) are much cheaper than links across groups (between outsiders). We also present equilibrium existence results and examine the effect of Pareto optimal publicly provided networks.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S016548961200025X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Mathematical Social Sciences.

    Volume (Year): 64 (2012)
    Issue (Month): 2 ()
    Pages: 166-172

    as in new window
    Handle: RePEc:eee:matsoc:v:64:y:2012:i:2:p:166-172

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/inca/505565

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2010. "The Insider-Outsider Model Reexamined," Games, MDPI, Open Access Journal, vol. 1(4), pages 422-437, October.
    2. Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2008. "Existence of Nash networks in one-way flow models," Economic Theory, Springer, vol. 37(3), pages 491-507, December.
    3. Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003. "Network Formation with Heterogeneous Players," Economics Discussion Papers 562, University of Essex, Department of Economics.
    4. Andrea Galeotti, 2004. "One-way Flow Networks: the Role of Heterogeneity," Tinbergen Institute Discussion Papers 04-031/1, Tinbergen Institute.
    5. Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September.
    6. Sudipta Sarangi & Hans Haller & Jurjen Kamphorst, . "(Non-)Existence and Scope of Nash Networks," Departmental Working Papers 2005-14, Department of Economics, Louisiana State University.
    7. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
    8. Jean Derks & Martijn Tennekes, 2009. "A note on the existence of Nash networks in one-way flow models," Economic Theory, Springer, vol. 41(3), pages 515-522, December.
    9. Venkatesh Bala & Sanjeev Goyal, 2000. "original papers : A strategic analysis of network reliability," Review of Economic Design, Springer, vol. 5(3), pages 205-228.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Philipp Möhlmeier & Agnieszka Rusinowska & Emily Tanimura, 2013. "A degree-distance-based connections model with negative and positive externalities," Documents de travail du Centre d'Economie de la Sorbonne 13040, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:64:y:2012:i:2:p:166-172. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.