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Stochastic Stability in Network with Decay

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Author Info
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.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2005.40.

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Date of creation: Mar 2005
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Handle: RePEc:fem:femwpa:2005.40

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Related research
Keywords: Network; Decay; Strategical interaction;

Find related papers by 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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  5. Sanjeev Goyal & Fernando Vega-Redondo, 2000. "Learning, Network Formation and Coordination," Econometric Society World Congress 2000 Contributed Papers 0113, Econometric Society. [Downloadable!]
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  6. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September. [Downloadable!] (restricted)
  7. Jackson, Matthew O. & Watts, Alison, 2002. "The Evolution of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 106(2), pages 265-295, October. [Downloadable!] (restricted)
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  8. Jackson, Matthew O. & Watts, Alison, 2002. "On the formation of interaction networks in social coordination games," Games and Economic Behavior, Elsevier, vol. 41(2), pages 265-291, November. [Downloadable!] (restricted)
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  9. Goyal, S. & Vega-Redondo, F., 2000. "Learning, Network Formation and Coordination," Econometric Institute Report EI 9954-/A Revision_Date:, Erasmus University Rotterdam, Econometric Institute. [Downloadable!]
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  13. Young, H Peyton, 1996. "The Economics of Convention," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 105-22, Spring. [Downloadable!] (restricted)
  14. 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)
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  15. Selten, Reinhard, 1991. "Evolution, learning, and economic behavior," Games and Economic Behavior, Elsevier, vol. 3(1), pages 3-24, February. [Downloadable!] (restricted)
    Other versions:
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