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On Hierarchies and Communication

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Author Info
René van den Brink () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

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Abstract

Many economic organizations have some relational structure, meaning that economic agents do not only differ with respect to certain individual characteristics such as wealth and preferences, but also belong to some relational structure in which they usually take different positions. Two examples of such structures are communication networks and hierarchies. In the literature the distinction between these two types of relational structures is not always clear. In models of restricted cooperation this distinction should be defined by properties of the set of feasible coalitions. We characterize the feasible sets in communication networks and compare them with feasible sets arising from hierarchies.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 06-056/1.

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Date of creation: 03 Jul 2006
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Handle: RePEc:dgr:uvatin:20060056

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Related research
Keywords: communication; hierarchy; cooperative game; feasible set;

Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

This paper has been announced in the following NEP Reports:

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