This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Network formation models with costs for establishing links

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Slikker, M.
Nouweland, A. van den (Tilburg University, Faculty of Economics and Business Administration)

Additional information is available for the following registered author(s):

Abstract

In this paper we study endogenous formation of communication networks in situations where the economic possibilities of groups of players can be described by a cooperative game. We concentrate on the in uence that the existence of costs for establishing communication links has on the communication networks that are formed. The starting points in this paper are two game-theoretic models of the formation of communication links that were studied in the literature fairly recently, the extensive-form model by Aumann and Myerson (1988) and the strategic-form model that was studied by Dutta, van den Nouweland and Tijs (1998). We follow their analyses as closely as possible and use an extension of the Myerson value to determine the payoffs to the players in communication situations when forming links is not costless. We find that for both models, the pattern of structures formed as costs increase depends on whether the underlying coalitional game is superadditive and/or convex.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://arno.uvt.nl/show.cgi?fid=3833
File Format: application/pdf
File Function:
Download Restriction: no
File URL: http://arno.uvt.nl/show.cgi?fid=3834
File Format: application/postscript
File Function:
Download Restriction: no

Publisher Info
Paper provided by Tilburg University, Faculty of Economics and Business Administration in its series Research Memorandum with number 771.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 1999
Date of revision:
Handle: RePEc:dgr:kubrem:1999771

Contact details of provider:
Web page: http://cwis.uvt.nl/~few/few2/

For technical questions regarding this item, or to correct its listing, contact: (Corry Stuyts).

Related research
Keywords: communication networks;

This paper has been announced in the following NEP Reports:

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.:
  1. Bhaskar Dutta & Suresh Mutuswami, 1997. "Stable Networks," Tinbergen Institute Discussion Papers 97-039/1, Tinbergen Institute.
    Other versions:
  2. 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. [Downloadable!] (restricted)
    Other versions:
  3. Slikker, M., 1998. "A note on link formation," Discussion Paper 20, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Roger B. Myerson, 1976. "Graphs and Cooperation in Games," Discussion Papers 246, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  5. Qin, Cheng-Zhong, 1996. "Endogenous Formation of Cooperation Structures," Journal of Economic Theory, Elsevier, vol. 69(1), pages 218-226, April. [Downloadable!] (restricted)
  6. Slikker, Marco & van den Nouweland, Anne, 2001. "A One-Stage Model of Link Formation and Payoff Division," Games and Economic Behavior, Elsevier, vol. 34(1), pages 153-175, January. [Downloadable!] (restricted)
    Other versions:
  7. 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. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, 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.)

  1. Matthew O. Jackson, 2002. "The Stability and Efficiency of Economic and Social Networks," Microeconomics 0211011, EconWPA. [Downloadable!]
  2. Robert P. Gilles & Sudipta Sarangi, 2006. "Building Social Networks," Discussion Papers of DIW Berlin 642, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  3. Felipe Balmaceda, 2004. "Network Formation and Cooperation," Econometric Society 2004 Latin American Meetings 208, Econometric Society. [Downloadable!]
  4. Toshiji Miyakawa, 2009. "Existence and efficiency of a stationary subgame-perfect equilibrium in coalitional bargaining models with nonsuperadditive payoffs," Economic Theory, Springer, vol. 39(2), pages 291-306, May. [Downloadable!] (restricted)
  5. Gilles, R.P. & Sarangi, S., 2003. "The role of trust in costly network formation," Discussion Paper 53, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  6. Bhaskar Dutta & Sayantan Ghosal & Debraj Ray, 2004. "Farsighted Network Formation," Working papers 122, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
    Other versions:
  7. Alexander Elbittar & Rodrigo Harrison & Roberto Muñoz, 2007. "Network Structure in a Link-formation Game: An Experimental Study," Levine's Working Paper Archive 122247000000001708, David K. Levine. [Downloadable!]
    Other versions:
  8. André Casajus, 2009. "Networks and outside options," Social Choice and Welfare, Springer, vol. 32(1), pages 1-13, January. [Downloadable!] (restricted)
  9. D'Ignazio, A. & Giovannetti, E., 2004. "From Exogenous to Endogenous Networks: Internet Applications," Cambridge Working Papers in Economics 0445, Faculty of Economics, University of Cambridge. [Downloadable!]
  10. Hans Haller & Sudipta Sarangi, 2003. "Nash Networks with Heterogeneous Agents," Discussion Papers of DIW Berlin 337, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  11. Anne van den Nouweland, 2004. "The Formation of Communication Networks in Cooperative Games," University of Oregon Economics Department Working Papers 2004-2, University of Oregon Economics Department. [Downloadable!]
  12. Rodrigo J. Harrison & Roberto Munoz, 2003. "Stability and Equilibrium Selection in a Link Formation Game," Game Theory and Information 0306004, EconWPA. [Downloadable!]
  13. Sudipta Sarangi & Robert P. Gilles, . "The Role of Beliefs and Confidence in Building Social Networks," Departmental Working Papers 2005-15, Department of Economics, Louisiana State University. [Downloadable!]
  14. Gilles, R.P. & Sarangi, S., 2004. "Social network formation with consent," Discussion Paper 70, Tilburg University, Center for Economic Research. [Downloadable!]
  15. Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, EconWPA. [Downloadable!]
    Other versions:
  16. Chantarat, Sommarat & Barrett , Christopher, 2008. "Social Network Capital, Economic Mobility and Poverty Traps," MPRA Paper 6841, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  17. Johnson, C. & Gilles, R.P., 1999. "Spatial social networks," Discussion Paper 87, Tilburg University, Center for Economic Research. [Downloadable!]
  18. Suresh Mutuswami & Eyal Winter, 2001. "Subscription Mechanisms for Network Formation," Discussion Paper Series dp264, Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem. [Downloadable!]
    Other versions:
  19. Filippo VERGARA CAFFARELLI, 2004. "Non-Cooperative Network Formation with Network Maintenance Costs," Economics Working Papers ECO2004/18, European University Institute. [Downloadable!]
  20. Suijs, J. & Borm, P. & Hamers, H. & Koster, M. & Quant, M., 2001. "Communication and cooperation in public network situations," Discussion Paper 44, Tilburg University, Center for Economic Research. [Downloadable!]
  21. Frédéric Deroïan, 2006. "Formation of a Communication Network Under Perfect Foresight," Theory and Decision, Springer, vol. 61(3), pages 191-204, November. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? IDEAS also indexes book chapters.

This page was last updated on 2009-11-11.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.