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A characterization of farsightedly stable networks

Author

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  • GRANDJEAN, Gilles
  • MAULEON, Ana
  • VENNETELBOSCH, Vincent

Abstract

We study the stability of social and economic networks when players are farsighted. We first provide an algorithm that characterizes the unique pairwise and groupwise farsightedly stable set of networks under the componentwise egalitarian allocation rule. We then show that this set coincides with the unique groupwise myopically stable set of networks but not with the unique pairwise myopically stable set of networks. We conclude that, if groupwise deviations are allowed then whether players are farsighted or myopic does not matter; if players are farsighted then whether players are allowed to deviate in pairs only or in groups does not matter.
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Suggested Citation

  • GRANDJEAN, Gilles & MAULEON, Ana & VENNETELBOSCH, Vincent, 2010. "A characterization of farsightedly stable networks," LIDAM Reprints CORE 2249, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2249
    DOI: 10.3390/g1030226
    Note: In : Games, 1(3), 226-241, 2010
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    Cited by:

    1. Polanski Arnold & Cardona Daniel, 2012. "Multilevel Mediation in Symmetric Trees," Review of Network Economics, De Gruyter, vol. 11(3), pages 1-23, September.

    More about this item

    JEL classification:

    • C - Mathematical and Quantitative Methods
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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