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Nash equilibria of network formation games under consent

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  • Gilles, Robert P.
  • Chakrabarti, Subhadip
  • Sarangi, Sudipta

Abstract

We investigate the Nash equilibria of game theoretic models of network formation based on explicit consent in link formation. These so-called “consent models” explicitly take account of link formation costs. We provide characterizations of Nash equilibria of such consent models under both one-sided and two-sided costs of link formation. We relate these equilibrium concepts to link-based stability concepts, in particular strong link deletion proofness.

Suggested Citation

  • Gilles, Robert P. & Chakrabarti, Subhadip & Sarangi, Sudipta, 2012. "Nash equilibria of network formation games under consent," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 159-165.
  • Handle: RePEc:eee:matsoc:v:64:y:2012:i:2:p:159-165
    DOI: 10.1016/j.mathsocsci.2012.03.005
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    8. Hans Haller & Jurjen Kamphorst & Sudipta Sarangi, 2007. "(Non-)existence and Scope of Nash Networks," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(3), pages 597-604, June.
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    Cited by:

    1. Sarkhel, Manish & Gupta, Sonakshi, 2023. "Consensus through connections," Economics Letters, Elsevier, vol. 232(C).
    2. Ronak Jain & Vatsal Khandelwal, 2024. "Silent networks: the role of inaccurate beliefs in reducing useful social interactions," ECON - Working Papers 455, Department of Economics - University of Zurich.
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    4. Olaizola, Norma & Valenciano, Federico, 2015. "Unilateral vs. bilateral link-formation: A transition without decay," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 13-28.
    5. Ding, Sihua, 2022. "Link investment substitutability: A factor influencing network formation," Games and Economic Behavior, Elsevier, vol. 136(C), pages 340-359.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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