Existence of Nash Networks and Partner Heterogeneity
In this paper, we pursue the work of H. Haller and al. (2005, ) and examine the existence of equilibrium networks, called Nash networks, in the noncooperative two-way flow model (Bala and Goyal, 2000, ) with partner heterogeneous agents. We show through an example that Nash networks do not always exist in such a context. We then restrict the payoff function, in order to find conditions under which Nash networks always exist. We give two properties : increasing differences and convexity in the first argument of the payoff function, that ensure the existence of Nash networks. It is worth noting that linear payoff functions satisfy the previous properties.
|Date of creation:||2011|
|Contact details of provider:|| Postal: 93, chemin des Mouilles - B.P.167 69131 - Ecully cedex|
Phone: 33(0)472 29 30 89
Fax: 33(0)47229 30 90
Web page: http://www.gate.cnrs.fr/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bloch, Francis & Dutta, Bhaskar, 2005.
"Communication Networks with Endogenous Link Strength,"
The Warwick Economics Research Paper Series (TWERPS)
723, University of Warwick, Department of Economics.
- Bloch, Francis & Dutta, Bhaskar, 2009. "Communication networks with endogenous link strength," Games and Economic Behavior, Elsevier, vol. 66(1), pages 39-56, May.
- Francis Bloch & Bhaskar Dutta, 2008. "Communication networks with endogeneous link strength," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-15, Indian Statistical Institute, New Delhi, India.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Galeotti, Andrea & Goyal, Sanjeev & Kamphorst, Jurjen, 2006.
"Network formation with heterogeneous players,"
Games and Economic Behavior,
Elsevier, vol. 54(2), pages 353-372, February.
- Venkatesh Bala & Sanjeev Goyal, 2000. "original papers : A strategic analysis of network reliability," Review of Economic Design, Springer;Society for Economic Design, vol. 5(3), pages 205-228.
- Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2007.
"Existence of Nash Networks in One-Way Flow Models,"
Discussion Papers of DIW Berlin
751, DIW Berlin, German Institute for Economic Research.
- Jean Derks & Martijn Tennekes, 2009. "A note on the existence of Nash networks in one-way flow models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(3), pages 515-522, December.
- Hans Haller & Jurjen Kamphorst & Sudipta Sarangi, 2007.
"(Non-)existence and Scope of Nash Networks,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(3), pages 597-604, June.
- Hojman, Daniel A. & Szeidl, Adam, 2008. "Core and periphery in networks," Journal of Economic Theory, Elsevier, vol. 139(1), pages 295-309, March.
- Haller, Hans & Sarangi, Sudipta, 2005. "Nash networks with heterogeneous links," Mathematical Social Sciences, Elsevier, vol. 50(2), pages 181-201, September.
- repec:ebl:ecbull:v:3:y:2008:i:79:p:1-4 is not listed on IDEAS
- Andrea Galeotti, 2006. "One-way flow networks: the role of heterogeneity," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(1), pages 163-179, September.
- Christophe Bravard & Sudipta Sarangi & Pascal Billand, 2008. "A Note on Existence of Nash Networks in One-way Flow," Economics Bulletin, AccessEcon, vol. 3(79), pages 1-4.
- Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2011.
"Strict Nash networks and partner heterogeneity,"
International Journal of Game Theory,
Springer;Game Theory Society, vol. 40(3), pages 515-525, August.
- Pascal Billand & Christophe Bravard, 2005. "A Note on the Characterization of Nash Networks," Post-Print hal-00372481, HAL.
- Billand, Pascal & Bravard, Christophe, 2005. "A note on the characterization of Nash networks," Mathematical Social Sciences, Elsevier, vol. 49(3), pages 355-365, May.
When requesting a correction, please mention this item's handle: RePEc:gat:wpaper:1111. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nelly Wirth)
If references are entirely missing, you can add them using this form.