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Network potentials

Author Info

Listed author(s):
  • Subhadip Chakrabarti

    ()

  • Robert Gilles

    ()

Abstract

A network payoff function assigns a utility to all participants in a (social) network. In this paper we discuss properties of such network payoff functions that guarantee the existence of certain types of pairwise stable networks and the convergence of certain network formation processes. In particular we investigate network payoff functions that admit an exact network potential or an ordinal network potential. We relate these network potentials to exact and ordinal potentials of a non-cooperative network formation game based on consent in link formation. Our main results extend and strengthen the current insights in the literature on game theoretic approaches to social network formation.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s10058-007-0026-3
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Article provided by Springer & Society for Economic Design in its journal Review of Economic Design.

Volume (Year): 11 (2007)
Issue (Month): 1 (June)
Pages: 13-52

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Handle: RePEc:spr:reecde:v:11:y:2007:i:1:p:13-52
DOI: 10.1007/s10058-007-0026-3
Contact details of provider: Web page: http://www.springer.com

Web page: https://sites.google.com/site/societyforeconomicdesign/

Order Information: Web: http://www.springer.com/economics/journal/10058

Keywords: Network formation; Pairwise stability; Potential functions; C72; C79; D85;

Other versions of this item:

Find related papers by 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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  1. Jackson, Matthew O. & van den Nouweland, Anne, 2005. "Strongly stable networks," Games and Economic Behavior, Elsevier, vol. 51(2), pages 420-444, May.
  2. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
  3. Bloch, Francis & Jackson, Matthew O., 2007. "The formation of networks with transfers among players," Journal of Economic Theory, Elsevier, vol. 133(1), pages 83-110, March.
  4. Robert P. Gilles & Sudipta Sarangi, 2006. "Building Social Networks," Discussion Papers of DIW Berlin 642, DIW Berlin, German Institute for Economic Research.
  5. Slikker, Marco & Gilles, Robert P. & Norde, Henk & Tijs, Stef, 2005. "Directed networks, allocation properties and hierarchy formation," Mathematical Social Sciences, Elsevier, vol. 49(1), pages 55-80, January.
  6. Dutta, Bhaskar & Mutuswami, Suresh, 1997. "Stable Networks," Journal of Economic Theory, Elsevier, vol. 76(2), pages 322-344, October.
    • Dutta, Bhaskar & Mutuswami, Suresh, 1996. "Stable Networks," Working Papers 971, California Institute of Technology, Division of the Humanities and Social Sciences.
  7. Qin, Cheng-Zhong, 1996. "Endogenous Formation of Cooperation Structures," Journal of Economic Theory, Elsevier, vol. 69(1), pages 218-226, April.
  8. Jackson, Matthew O. & Watts, Alison, 2002. "The Evolution of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 106(2), pages 265-295, October.
  9. Goyal, Sanjeev & Vega-Redondo, Fernando, 2007. "Structural holes in social networks," Journal of Economic Theory, Elsevier, vol. 137(1), pages 460-492, November.
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Cited by:

  1. Hellmann, Tim & Staudigl, Mathias, 2014. "Evolution of social networks," European Journal of Operational Research, Elsevier, vol. 234(3), pages 583-596.
  2. Olaizola, Norma & Valenciano, Federico, 2015. "Unilateral vs. bilateral link-formation: A transition without decay," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 13-28.
  3. Tim Hellmann & Berno Buechel, 2009. "Under-connected and Over-connected Networks," Working Papers 2009.38, Fondazione Eni Enrico Mattei.
  4. Pin, Paolo, 2011. "Eight degrees of separation," Research in Economics, Elsevier, vol. 65(3), pages 259-270, September.
  5. Hellmann, Tim, 2011. "Convexity and complementarity in network formation. Implications for the structure of pairwise stable networks," Center for Mathematical Economics Working Papers 423, Center for Mathematical Economics, Bielefeld University.
  6. Atabati, Omid & Farzad, Babak, 2014. "A strategic model for network formation," MPRA Paper 62529, University Library of Munich, Germany.
  7. Hellmann, Tim & Landwehr, Jakob, 2014. "Stable Networks in Homogeneous Societies," Center for Mathematical Economics Working Papers 517, Center for Mathematical Economics, Bielefeld University.
  8. Rodrigo Harrison & Roberto Muñoz, 2008. "Stability and equilibrium selection in a link formation game," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(2), pages 335-345, November.
  9. Chakrabarti, Subhadip & Tangsangasaksri, Supanit, 2014. "Network Topology, Higher Orders of Stability and Efficiency," MPRA Paper 52749, University Library of Munich, Germany.
  10. Berno Buechel & Tim Hellmann, 2012. "Under-connected and over-connected networks: the role of externalities in strategic network formation," Review of Economic Design, Springer;Society for Economic Design, vol. 16(1), pages 71-87, March.
  11. Tim Hellmann, 2013. "On the existence and uniqueness of pairwise stable networks," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(1), pages 211-237, February.
  12. Gilles, Robert P. & Sarangi, Sudipta, 2010. "Network formation under mutual consent and costly communication," Mathematical Social Sciences, Elsevier, vol. 60(3), pages 181-185, November.

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