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Stochastic Stability in Network with Decay

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  • Francesco Feri

    (Ca’ Foscari University)

Abstract

This paper considers a simple communication network characterized by an endogenous architecture and an imperfect transmission of information. We analyze the process of network formation in a dynamic framework where self – interested individuals can form or delete links and, occasionally, are doing mistakes. Then, using stochastic stability, we identify which network structures the formation process will converge to.

Suggested Citation

  • Francesco Feri, 2005. "Stochastic Stability in Network with Decay," Working Papers 2005.40, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2005.40
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    References listed on IDEAS

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    More about this item

    Keywords

    Network; Decay; Strategical interaction;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D20 - Microeconomics - - Production and Organizations - - - General
    • J00 - Labor and Demographic Economics - - General - - - General

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