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Club networks with multiple memberships and noncooperative stability

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  • Page Jr., Frank H.
  • Wooders, Myrna

Abstract

Modeling club structures as bipartite directed networks, we formulate the problem of club formation with multiple memberships as a noncooperative game of network formation and identify conditions on network formation rules and players' network payoffs sufficient to guarantee that the game has a potential function. Our sufficient conditions require that each player choose freely and unilaterally those clubs he joins and also his activities within those clubs (subject to feasibility constraints). We refer to our conditions on rules as noncooperative free mobility. We also require that players' payoffs be additively separable in player-specific payoffs and externalities and that payoff externalities -- a function of club membership, club activities, and crowding -- be identical across players (externality homogeneity). We then show that under these conditions, the noncooperative game of club network formation with multiple memberships is a potential game over directed club networks and we discuss the implications of this result.

Suggested Citation

  • Page Jr., Frank H. & Wooders, Myrna, 2010. "Club networks with multiple memberships and noncooperative stability," Games and Economic Behavior, Elsevier, vol. 70(1), pages 12-20, September.
  • Handle: RePEc:eee:gamebe:v:70:y:2010:i:1:p:12-20
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    1. repec:hal:journl:halshs-00881125 is not listed on IDEAS
    2. Jean-François Caulier & Michel Grabisch & Agnieszka Rusinowska, 2015. "An allocation rule for dynamic random network formation processes," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(2), pages 283-313, October.
    3. Jean-François Caulier & Ana Mauleon & Vincent Vannetelbosch, 2013. "Contractually stable networks," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 483-499, May.
    4. Ana Mauleon & Nils Roehl & Vincent Vannetelbosch, 2014. "Constitutions and Social Networks," Working Papers Dissertations 02, Paderborn University, Faculty of Business Administration and Economics.
    5. Jean-François Caulier & Michel Grabisch & Agnieszka Rusinowska, 2015. "An allocation rule for dynamic random network formation," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-01207823, HAL.
    6. repec:hal:journl:halshs-01207823 is not listed on IDEAS
    7. Wooders, Myrna, 2008. "Market games and clubs," MPRA Paper 33968, University Library of Munich, Germany, revised Dec 2010.
    8. Jean-François Caulier & Ana Mauleon & Jose Sempere-Monerris & Vincent Vannetelbosch, 2013. "Stable and efficient coalitional networks," Review of Economic Design, Springer;Society for Economic Design, vol. 17(4), pages 249-271, December.
    9. Gong, Rui & Page, Frank & Wooders, Myrna, 2015. "Endogenous correlated network dynamics," LSE Research Online Documents on Economics 65098, London School of Economics and Political Science, LSE Library.
    10. Page Jr., Frank H. & Wooders, Myrna, 2009. "Strategic basins of attraction, the path dominance core, and network formation games," Games and Economic Behavior, Elsevier, vol. 66(1), pages 462-487, May.
    11. MAULEON Ana & ROEHL Nils & VANNETELBOSCH Vincent, 2017. "Constitutions and groups," CORE Discussion Papers 2017022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. repec:eee:gamebe:v:107:y:2018:i:c:p:135-152 is not listed on IDEAS
    13. Gong, Rui & He, Jieshuang & Page, Frank, 2016. "Incentive compatible networks and the delegated networking principle," LSE Research Online Documents on Economics 66045, London School of Economics and Political Science, LSE Library.
    14. Jean-François Caulier & Ana Mauleon & Jose Sempere-Monerris & Vincent Vannetelbosch, 2013. "Stable and efficient coalitional networks," Review of Economic Design, Springer;Society for Economic Design, vol. 17(4), pages 249-271, December.
    15. Jean-François Caulier & Michel Grabisch & Agnieszka Rusinowska, 2015. "An allocation rule for dynamic random network formation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01207823, HAL.

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