We study the model of link formation that was introduced by Aumann and Myerson (1988) and focus on symmetric convex games with transferable utilities. We answer an open question in the literature by showing that in a specific symmetric convex game with six players a structure that results in the same payoffs as the full cooperation structure can be formed according to a subgame perfect Nash equilibrium.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
114.
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Find related papers by JEL classification: C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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Jackson, Matthew O. & van den Nouweland, Anne, 2002.
"Strongly Stable Networks,"
Working Papers
1147, California Institute of Technology, Division of the Humanities and Social Sciences.
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