We make four main contributions to the theory of network formation. (1) The problem of network formation with … farsighted agents can be formulated as an abstract network formation game. (2) In any farsighted network formation game the … and persist if individuals behave farsightedly in playing the network formation game. (3) A von Neumann-Morgenstern stable …

are allowed. A network is coalition-proof stable if there exists no coalition which has a credible group deviation. A … coalition is said to have a credible group deviation if there is a profitable group deviation to some network and there is no …

in a buyer-seller network and suggest a framework for studying repeated games in such networks. In our framework, buyers … and sellers have rich yet incomplete knowledge of the network structure; allowing us to derive meaningful conditions that … determine whether a network is consistent with trade and cooperation between every buyer and seller that are connected. We show …

We provide a tractable concept that can be used to study the influence of the degree of farsightedness on network … deviations should be deterred. Second, from any network outside of GK there is a sequence of farsighted improving paths of length … smaller than or equal to K leading to some network in GK. Third, there is no proper subset of GK satisfying the first two …

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 each individual has with his coalition members and with individuals … contractual stability which requires that any change made to the coalitional network needs the consent of both the deviating …

networks form, the impact of network structure on agents' outcomes, and the evolution of networks over time. For this purpose …, we combine a network game introduced by Ballester et al. [2006], where the Nash equilibrium action of each agent is … proportional to her Bonacich centrality, with an endogenous network formation process. Links are formed on the basis of agents …

, we construct an information-network model incorporating both information transmitters and information aggregators. Given … network equilibrium, its optimality and the patterns of equilibrium and optimal configuration. We then allow for endogenous … costs, the monocentric network with one aggregator connecting to all other agents as transmitters on a tree graph is the …