Farsightedly Basic Networks
We make two main contributions to the theory of network formation. First, we introduce a new notion of farsighted equilibrium in network formation. In particular, we introduce the notion of a farsightedly basic network, as well as the notion of a farsighted basis. Given the feasible set of networks, the rules governing network formation, and the preferences of individuals, a farsightedly basic network contained in the farsighted basis represents a possible final resting point (or absorbing state) of a network formation process in which agents behave farsightedly. Thus, the set of networks forming a farsighted basis contains networks which are likely to emerge and persist if individuals behave farsightedly. Second, we show that given any set of rules governing network formation and given any profile of individual preferences over the feasible set of networks, there exists a nonempty subset of networks forming a farsighted basis of the network formation process.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: CV4 7AL COVENTRY|
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/
More information through EDIRC
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.:
- Samir Kamat & Frank Page & Myrna Wooders, 2004.
"Networks and Farsighted Stability,"
Econometric Society 2004 North American Winter Meetings
561, Econometric Society.
- Page Jr. Frank H & Wooders, Myrna & Kamat, Samir, 2003. "Networks and Farsighted Stability," The Warwick Economics Research Paper Series (TWERPS) 689, University of Warwick, Department of Economics.
- Page Jr, Frank H & Wooders, Myrna H. & Kamat, Samir, 2002. "Networks And Farsighted Stability," The Warwick Economics Research Paper Series (TWERPS) 660, University of Warwick, Department of Economics.
- Frank H. Page Jr. & Myrna H. Wooders & Samir Kamat, 2002. "Networks and Farsighted Stability," Computing in Economics and Finance 2002 370, Society for Computational Economics.
- Page Jr, Frank H & Wooders, Myrna H & Kamat, Samir, 2001. "Networks And Farsighted Stability," The Warwick Economics Research Paper Series (TWERPS) 621, University of Warwick, Department of Economics.
- Watts, Alison, 2002. "Non-myopic formation of circle networks," Economics Letters, Elsevier, vol. 74(2), pages 277-282, January.
- Bhaskar Dutta & Sayantan Ghosal & Debraj Ray, 2004.
"Farsighted Network Formation,"
122, Centre for Development Economics, Delhi School of Economics.
- Watts, Alison, 2001. "A Dynamic Model of Network Formation," Games and Economic Behavior, Elsevier, vol. 34(2), pages 331-341, February.
- Chwe Michael Suk-Young, 1994. "Farsighted Coalitional Stability," Journal of Economic Theory, Elsevier, vol. 63(2), pages 299-325, August.
- Matthew O. Jackson & Asher Wolinsky, 1995.
"A Strategic Model of Social and Economic Networks,"
1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dutta, Bhaskar & Mutuswami, Suresh, 1997.
Journal of Economic Theory,
Elsevier, vol. 76(2), pages 322-344, October.
- Matthew O. Jackson, 2002. "The Stability and Efficiency of Economic and Social Networks," Microeconomics 0211011, EconWPA.
- Deroian, Frederic, 2003. "Farsighted strategies in the formation of a communication network," Economics Letters, Elsevier, vol. 80(3), pages 343-349, September.
When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:702. 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: (Robyn Till)
If references are entirely missing, you can add them using this form.