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On stability of economic networks

Author

Listed:
  • Hamid Beladi

    (University of Texas at San Antonio)

  • Xiao Luo

    (National University of Singapore)

  • Reza Oladi

    (Utah State University)

  • Nicholas S. P. Tay

    (University of San Francisco)

Abstract

In the spirit of Von Neumann and Morgenstern (Theory of games and economic behavior, Princeton University Press, Princeton, 1944), we introduce a notion of network stability. We study the structure of stable economic networks and their associated stable payoff allocations by analyzing the conditions under which complete networks and star networks (both with desirable property of inclusiveness) are stable. We also address conditions for existence and uniqueness of stable set of networks.

Suggested Citation

  • Hamid Beladi & Xiao Luo & Reza Oladi & Nicholas S. P. Tay, 2023. "On stability of economic networks," Theory and Decision, Springer, vol. 94(4), pages 677-691, May.
    • Handle: RePEc:kap:theord:v:94:y:2023:i:4:d:10.1007_s11238-022-09903-x
    DOI: 10.1007/s11238-022-09903-x
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    References listed on IDEAS

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    Cited by:

    1. Hamid Beladi & Xiao Luo & Reza Oladi, 2024. "Market networks: the core," Theory and Decision, Springer, vol. 97(3), pages 485-498, November.

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    Keywords

    Economic networks; stability;

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