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Choosing `Me' and `My Friends': Identity in a Non-Cooperative Network Formation Game with Cost Sharing

  • Dev, Pritha
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    This paper introduces the choice of identity characteristics, and, commitments to these characteristics, in a network formation model where links costs are shared. Players want to link to the largest group given that linking costs are decreasing (increasing) in commitments for same (different) identity. We study conditions under which these choices allow for networks with multiple identities. We find that whether the choice of identity itself gives any utility or not, there will be Nash networks featuring multiple identities. Moreover, if the choice of identity directly adds utility, networks with multiple identities will be efficient and survive the dynamic process.

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    File URL: http://mpra.ub.uni-muenchen.de/21631/1/MPRA_paper_21631.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21631.

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    Date of creation: Mar 2010
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    Handle: RePEc:pra:mprapa:21631
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    1. MUTUSWAMI, Suresh & WINTER, Eyal, 2000. "Subscription mechanisms for network formation," CORE Discussion Papers 2000020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    10. repec:dgr:kubcen:200470 is not listed on IDEAS
    11. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
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    22. Gilles, R.P. & Sarangi, S., 2004. "Social Network Formation with Consent," Discussion Paper 2004-70, Tilburg University, Center for Economic Research.
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