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Evolution of cooperative networks

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  • Pandey, Siddhi Gyan

    (Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University)

Abstract

Situations that require individuals to mutually cooperate are often analysed as coordination games. This paper proposes a model of cooperative network formation where the network is formed through the process of the coordination game being played between multiple agents. Additionally, network effects are modelled in by the fact that the benefit to any agent from a mutually cooperative link is enhanced, over a base value, by a factor of her trustworthiness or reputation as observed by her partner in that link. Within this framework, evolution of cooperative networks is analysed in the presence of altruistic agents, through repeated interaction between myopically best responding agents in a finite population. Properties of networks that sustain as Nash equilibrium are also analysed.

Suggested Citation

  • Pandey, Siddhi Gyan, 2021. "Evolution of cooperative networks," Working Papers 21/346, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:21/346
    Note: Working Paper 346, 2021
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    2. Mehta, Diva & Mukherjee, Sacchidananda, 2021. "Emerging Issues in GST Law and Procedures: An Assessment," Working Papers 21/347, National Institute of Public Finance and Policy.

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    Keywords

    coordination game ; network formation ; game theory ; social networks;
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