In this paper we model the formation of directed communication networks. A directed communication network is represented by a directed graph. Firstly, we study an allocation rule satisfying two appealing properties, component efficiency and directed fairness. We show that such an allocation rule exists if and only if we restrict ourselves to a class of directed graphs that naturally comes to the fore in the setting of hierarchical structures. Subsequently, we discuss several possibilities to model the formation of directed communication networks and provide some preliminary results.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
84.
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.:
Dutta, Bhaskar & Mutuswami, Suresh, 1996.
"Stable Networks,"
Working Papers
971, California Institute of Technology, Division of the Humanities and Social Sciences.
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