Eight degrees of separation
We present a network formation game whose equilibria are undirected networks. Every connected couple contributes to the aggregate payoff by a fixed quantity, and the outcome is split between players according to the Myerson value allocation rule. This setup shows a wide multiplicity of non-empty equilibria, all of them connected. We show that the efficient equilibria of the game are either the empty network, or a network whose diameter does not exceed a threshold of 8 (i.e. there are no two nodes with a distance greater than 8).
Year of publication: |
2011
|
---|---|
Authors: | Pin, Paolo |
Published in: |
Research in Economics. - Elsevier, ISSN 1090-9443. - Vol. 65.2011, 3, p. 259-270
|
Publisher: |
Elsevier |
Subject: | Network formation Myerson value |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Pin, Paolo, (2006)
-
Opportunity and choice in social networks
Pin, Paolo, (2008)
-
A network model of price dispersion
Pasini, Giacomo, (2008)
- More ...