Existence of Nash Networks and Partner Heterogeneity
AbstractIn this paper, we pursue the work of H. Haller and al. (2005, ) and examine the existence of equilibrium networks, called Nash networks, in the noncooperative two-way flow model (Bala and Goyal, 2000, ) with partner heterogeneous agents. We show through an example that Nash networks do not always exist in such a context. We then restrict the payoff function, in order to find conditions under which Nash networks always exist. We give two properties : increasing differences and convexity in the first argument of the payoff function, that ensure the existence of Nash networks. It is worth noting that linear payoff functions satisfy the previous properties.
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Bibliographic InfoPaper provided by Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure in its series Working Papers with number 1111.
Date of creation: 2011
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Nash networks; two-way flow models; partner heterogeneity;
Other versions of this item:
- Billand, Pascal & Bravard, Christophe & Sarangi, Sudipta, 2012. "Existence of Nash networks and partner heterogeneity," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 152-158.
- Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2011. "Existence of Nash Networks and Partner Heterogeneity," Post-Print halshs-00574277, HAL.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-19 (All new papers)
- NEP-GTH-2011-03-19 (Game Theory)
- NEP-ORE-2011-03-19 (Operations Research)
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.:
- Venkatesh Bala & Sanjeev Goyal, 2000. "original papers : A strategic analysis of network reliability," Review of Economic Design, Springer, vol. 5(3), pages 205-228.
- Hans Haller & Jurjen Kamphorst & Sudipta Sarangi, 2007.
"(Non-)existence and Scope of Nash Networks,"
Springer, vol. 31(3), pages 597-604, June.
- Sudipta Sarangi & Hans Haller & Jurjen Kamphorst, . "(Non-)Existence and Scope of Nash Networks," Departmental Working Papers, Department of Economics, Louisiana State University 2005-14, Department of Economics, Louisiana State University.
- Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003.
"Network Formation with Heterogeneous Players,"
Economics Discussion Papers, University of Essex, Department of Economics
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- Andrea Galeotti, 2006.
"One-way flow networks: the role of heterogeneity,"
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- Sudipta Sarangi & Pascal Billand & Christophe Bravard, .
"Existence of Nash Networks in One-Way Flow Models,"
Departmental Working Papers, Department of Economics, Louisiana State University
2006-05, Department of Economics, Louisiana State University.
- Bloch, Francis & Dutta, Bhaskar, 2009.
"Communication networks with endogenous link strength,"
Games and Economic Behavior,
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- Bloch, Francis & Dutta, Bhaskar, 2005. "Communication Networks with Endogenous Link Strength," The Warwick Economics Research Paper Series (TWERPS) 723, University of Warwick, Department of Economics.
- Jean Derks & Martijn Tennekes, 2009. "A note on the existence of Nash networks in one-way flow models," Economic Theory, Springer, vol. 41(3), pages 515-522, December.
- Christophe Bravard & Sudipta Sarangi & Pascal Billand, 2008. "A Note on Existence of Nash Networks in One-way Flow," Economics Bulletin, AccessEcon, vol. 3(79), pages 1-4.
- Hojman, Daniel A. & Szeidl, Adam, 2008. "Core and periphery in networks," Journal of Economic Theory, Elsevier, vol. 139(1), pages 295-309, March.
- Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, Econometric Society, vol. 68(5), pages 1181-1230, September.
- repec:ebl:ecbull:v:3:y:2008:i:79:p:1-4 is not listed on IDEAS
- Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2011. "Strict Nash networks and partner heterogeneity," International Journal of Game Theory, Springer, vol. 40(3), pages 515-525, August.
- Billand, Pascal & Bravard, Christophe, 2005. "A note on the characterization of Nash networks," Mathematical Social Sciences, Elsevier, vol. 49(3), pages 355-365, May.
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