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A Characterization of Farsightedly Stable Networks

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Author Info

  • Gilles Grandjean

    ()
    (CORE, Université catholique de Louvain, 34 voie du Roman Pays, 1348 Louvain-la-Neuve, Belgium)

  • Ana Mauleon

    ()
    (FNRS and CEREC, Facultés universitaires Saint-Louis, 43 Boulevard du Jardin Botanique, 1000 Brussels, Belgium
    FNRS and CORE, Université catholique de Louvain, 34 voie du Roman Pays, 1348 Louvain-la-Neuve, Belgium)

  • Vincent Vannetelbosch

    ()
    (FNRS and CORE, Université catholique de Louvain, 34 voie du Roman Pays, 1348 Louvain-la-Neuve, Belgium)

Abstract

We study the stability of social and economic networks when players are farsighted. We first provide an algorithm that characterizes the unique pairwise and groupwise farsightedly stable set of networks under the componentwise egalitarian allocation rule. We then show that this set coincides with the unique groupwise myopically stable set of networks but not with the unique pairwise myopically stable set of networks. We conclude that, if groupwise deviations are allowed then whether players are farsighted or myopic does not matter; if players are farsighted then whether players are allowed to deviate in pairs only or in groups does not matter.

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File URL: http://www.mdpi.com/2073-4336/1/3/226/pdf
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File URL: http://www.mdpi.com/2073-4336/1/3/226/
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Bibliographic Info

Article provided by MDPI, Open Access Journal in its journal Games.

Volume (Year): 1 (2010)
Issue (Month): 3 (July)
Pages: 226-241

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Handle: RePEc:gam:jgames:v:1:y:2010:i:3:p:226-241:d:9053

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Related research

Keywords: farsighted players; pairwise deviations; groupwise deviations;

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