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Network Extension

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  • Hans Haller

Abstract

In a model of strategic network formation, the endogenously formed network is built around a pre-existing network. We envisage that the pre-existing or core network is publicly provided. Strategic network formation is decentralized: Players act in their private interest and bear the costs when adding links to the pre-existing network. We study how the pre-existing network affects existence of Nash equilibria and efficiency of Nash equilibrium outcomes.

Suggested Citation

  • Hans Haller, 2010. "Network Extension," Working Papers e07-22, Virginia Polytechnic Institute and State University, Department of Economics.
  • Handle: RePEc:vpi:wpaper:e07-22
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    File URL: ftp://repec.econ.vt.edu/Papers/Haller/NetForm2.pdf
    File Function: First version, 2010
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    Keywords

    Network formation; Network extension; Network infrastructure; Strategic games; Efficiency; Stability;

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