Link Biased Strategies in Network Formation Games
نویسندگان
چکیده
We show a simple method for constructing an infinite family of graph formation games with link bias so that the resulting games admits, as a pairwise stable solution, a graph with an arbitrarily specified degree distribution. Pairwise stability is used as the equilibrium condition over the more commonly used Nash equilibrium to prevent the occurrence of ill-behaved equilibrium strategies that do not occur in ordinary play. We construct this family of games by solving an integer programming problem whose constraints enforce the terminal pairwise stability property we desire.
منابع مشابه
A contract-based model for directed network formation
We consider a network game where the nodes of the network wish to form a graph to route traffic between themselves. We present a model where costs are incurred for routing traffic, as well as for a lack of network connectivity. We focus on directed links and the link stability equilibrium concept, and characterize connected link stable equilibria. The structure of connected link stable networks...
متن کاملNash equilibria of network formation games under consent
We investigate the Nash equilibria of game theoretic models of network formation based on explicit consent in link formation. These so-called “consent models” explicitly take account of link formation costs. We provide characterizations of Nash equilibria of such consent models under both one-sided and two-sided costs of link formation. We relate these equilibrium concepts to link-based stabili...
متن کاملNetwork Formation with Endogenous Link Strength and Decreasing Returns to Investment
We study the formation of networks where agents choose how much to invest in each relationship. The benefit that an agent can derive from a network depends on the strength of the direct links between agents. We assume that the strength of the direct link between any pair of agents is a concave function of their investments towards each other. In comparison with some existing models of network f...
متن کاملCoalitional stochastic stability in games, networks and markets
This paper examines a dynamic process of unilateral and joint deviations of agents and the resulting stochastic evolution of social conventions in a class of interactions that includes normal form games, network formation games, and simple exchange economies. Over time agents unilaterally and jointly revise their strategies based on the improvements that the new strategy profile offers them. In...
متن کاملStability and Equilibrium Selection in a Link Formation Game
In this paper we use a non cooperative equilibrium selection approach as a notion of stability in link formation games. Specifically, we follow the global games approach first introduced by Carlsson and van Damme (1993), to study the robustness of the set of Nash equilibria for a class of link formation games in strategic form with supermodular payoff functions. Interestingly, the equilibrium s...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
- CoRR
دوره abs/1106.3582 شماره
صفحات -
تاریخ انتشار 2011