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Team Formation in a Network

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Author Info
Markus Kinateder (Universidad de Navarra)

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Abstract

Two project leaders (or entrepreneurs) in a network, which captures social relations, recruit players in a strategic, competitive and time-limited process. Each team has an optimal size depending on the project’s quality. This is a random variable with a commonly known distribution. Only the corresponding project leader observes its realization. Any decision is only observed by the involved agents. The set of pure strategy Sequential Equilibria is characterized by giving an algorithm that selects one equilibrium at a time. An agent’s expected payoff is related to his position in the network, though no centrality measure in the literature captures this relation. A social planner frequently would achieve a higher welfare.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.36.

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Date of creation: May 2009
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Handle: RePEc:fem:femwpa:2009.36

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Related research
Keywords: Dynamic Competitive Group Formation; Imperfect Information;

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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