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Allocating value among farsighted players in network formation

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  • Carayol, Nicolas
  • Delille, Rémy
  • Vannetelbosch, Vincent

Abstract

We study the stability of networks when players are farsighted and allocations are determined endogenously. The set of strongly efficient networks is the unique von Neumann–Morgenstern farsightedly stable set with bargaining if the value function is anonymous, component additive and top convex and the allocation rule is anonymous and component efficient. Moreover, the componentwise egalitarian allocation rule emerges endogenously.

Suggested Citation

  • Carayol, Nicolas & Delille, Rémy & Vannetelbosch, Vincent, 2015. "Allocating value among farsighted players in network formation," Economics Letters, Elsevier, vol. 137(C), pages 50-53.
    • Handle: RePEc:eee:ecolet:v:137:y:2015:i:c:p:50-53
    DOI: 10.1016/j.econlet.2015.10.020
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    1. Yangbo Song & Mihaela Schaar, 2020. "Dynamic network formation with foresighted agents," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(2), pages 345-384, June.

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    More about this item

    Keywords

    Farsighted players; Stability; Equal bargaining power;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D20 - Microeconomics - - Production and Organizations - - - General

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