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Efficient networks for a class of games with global spillovers

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  • Sudipta Sarangi

    ()

  • Pascal Billand

    ()

  • Christophe Bravard

    ()

  • Jacques Durieu

    ()

Abstract

In this paper we characterize efficient networks for network formation games with global spillovers, that satisfy convexity and sub-modularity properties. This allows us to complete the work of Goyal and Joshi (2006) and Westbrock on collaborative oligopoly networks. In particular, we establish that efficient networks are nested split graphs in this class of games.

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File URL: http://bus.lsu.edu/McMillin/Working_Papers/pap13_06.pdf
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Paper provided by Department of Economics, Louisiana State University in its series Departmental Working Papers with number 2013-06.

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Handle: RePEc:lsu:lsuwpp:2013-06

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  1. Bastian Westbrock, 2010. "Natural concentration in industrial research collaboration," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 351-371.
  2. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
  3. König, Michael D. & Battiston, Stefano & Napoletano, Mauro & Schweitzer, Frank, 2012. "The efficiency and stability of R&D networks," Games and Economic Behavior, Elsevier, vol. 75(2), pages 694-713.
  4. Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer, vol. 34(3), pages 319-349, October.
  5. Mohamed Belhaj & Sebastian Bervoets & Frédéric Deroïan, 2013. "Network Design under Local Complementarities," Working Papers halshs-00796487, HAL.
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