We study a model in which heterogenous agents first form a trading network where link formation is costless. Then, a seller and a buyer are randomly selected among the agents to bargain through a chain of intermediaries. We determine both the trading path and the allocation of the surplus among...

The paper analyzes the role of the structure of communication - i.e. who is talking with whom - on the choice of messages, on their credibility and on actual play. We run an experiment in a three-player coordination game with Pareto ranked equilibria, where a pair of agents has a profitable...

We develop a theoretical framework that allows us to study which bilateral links and coalition structures are going to emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where the network specifies the nature of the relationship...

Different solution concepts (core, stable sets, largest consistent set, ...) can be defined using either a direct or an indirect dominance relation. Direct dominance implies indirect dominance, but not the reverse. Hence, the predicted outcomes when assuming myopic (direct) or farsighted...

Curb sets [Basu and Weibull, Econ. Letters 36 (1991), 141-146] are product sets of pure strategies containing all individual best-responses against beliefs restricted to the recommendations to the remaining players. The concept of minimal curb sets is a set-theoretic coarsening of the notion of...

We develop a two-stage negotiation model to study the impact of costly inspections on both the coalition formation outcome and the per-member payoffs. In the first stage, the players are forming coalitions and inside each coalition formed the members share the coalition benefits. We adopt the...

We propose a new concept, the pairwise farsightedly stable set, in order to predict which networks may be formed among farsighted players. A set of networks G is pairto a network outside G are deterred by the threat of ending worse off or equally well wise farsightedly stable (i) if all possible...

We develop a theoretical framework that allows us to study which bilateral links and coalition structures are going to emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where the network specifies the nature of the relationship...

We study the endogenous formation of networks between manufacturers of differentiated goods and multi-product retailers who interact in a successive duopoly. Joint consent is needed to establish and/or maintain a costly link between a manufacturer anda retailer. We find that only three...