We study the formation of a communication network under perfect foresight. We show the existence of a non-monotonic relationship between the cost of link formation and the total number of links created in stable networks. This result enhances a dilemma between stable and efficient networks. Copyright Springer 2006
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Volume (Year): 61 (2006) Issue (Month): 3 (November) Pages: 191-204 Download reference. The following formats are available: HTML
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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.:
Bhaskar Dutta & Sayantan Ghosal & Debraj Ray, 2004.
"Farsighted Network Formation,"
Working papers
122, Centre for Development Economics, Delhi School of Economics.
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