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Network Topology, Higher Orders of Stability and Efficiency

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  • Chakrabarti, Subhadip
  • Tangsangasaksri, Supanit
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    Abstract

    Stable networks of order r where r is a natural number refer to those networks that are immune to coalitional deviation of size r or less. In this paper, we introduce stability of a finite order and examine its relation with efficient networks under anonymous and component additive value functions and the component-wise egalitarian allocation rule. In particular, we examine shapes of networks or network architectures that would resolve the conflict between stability and efficiency in the sense that if stable networks assume those shapes they would be efficient and if efficient networks assume those shapes, they would be stable with minimal further restrictions on value functions.

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    File URL: http://mpra.ub.uni-muenchen.de/52749/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52749.

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    Date of creation: 06 Jan 2014
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    Handle: RePEc:pra:mprapa:52749

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    Keywords: Stability of order r; Efficiency; Network architecture;

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    1. Paul Belleflamme & Francis Bloch, 2001. "Market Sharing Agreements and Collusive Networks," Working Papers 443, Queen Mary, University of London, School of Economics and Finance.
    2. Subhadip Chakrabarti & Robert Gilles, 2007. "Network potentials," Review of Economic Design, Springer, vol. 11(1), pages 13-52, June.
    3. Matthew O. Jackson, 2001. "Strongly Stable Networks," University of Oregon Economics Department Working Papers 2001-3, University of Oregon Economics Department, revised 15 Nov 2002.
    4. Gilles, Robert P. & Chakrabarti, Subhadip & Sarangi, Sudipta & Badasyan, Narine, 2006. "Critical agents in networks," Mathematical Social Sciences, Elsevier, vol. 52(3), pages 302-310, December.
    5. Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer, vol. 34(3), pages 319-349, October.
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