In this paper we study endogenous formation of communication networks in situations where the economic possibilities of groups of players can be described by a cooperative game. We concentrate on the in uence that the existence of costs for establishing communication links has on the...

Polymatrix games concern a class of noncooperative multiperson games in normal form.Characteristic for these games is that the payo s for any player are additive in the payo s obtained against the individual other players.Harsanyi and Selten (1988) developed the tracing procedure for selecting...

We experimentally investigate the nature of strategic interaction in a 2-player game.Player 1may take x Dutch guilders (f x) and end the game (player 2 then gets f 0), or let player 2 split f 20 between the players. x is a treatment variable taking values of f 4, 7, 10, 13, and 16.We find that...