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Symmetric Convex Games and Stable Structures

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  • Slikker, M.
  • Norde, H.W.

    (Tilburg University, Center for Economic Research)

Abstract

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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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2004-114.

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Date of creation: 2004
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Handle: RePEc:dgr:kubcen:2004114

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Web page: http://center.uvt.nl

Related research

Keywords: symmetric convex game; undirected graph; link formation; stable structures;

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  1. Stef Tijs & Anne van den Nouweland & Bhaskar Dutta, 1998. "Link formation in cooperative situations," International Journal of Game Theory, Springer, vol. 27(2), pages 245-256.
  2. Roger B. Myerson, 1976. "Graphs and Cooperation in Games," Discussion Papers 246, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Jackson, Matthew O., 2005. "Allocation rules for network games," Games and Economic Behavior, Elsevier, vol. 51(1), pages 128-154, April.
  4. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
  5. Slikker, M. & Norde, H.W., 2000. "Incomplete Stable Structures in Symmetric Convex Games," Discussion Paper 2000-97, Tilburg University, Center for Economic Research.
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