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A Note on the Characterization of Nash Networks

Author

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  • Pascal Billand

    (CREUSET - Centre de Recherche Economique de l'Université de Saint-Etienne - UJM - Université Jean Monnet - Saint-Étienne)

  • Christophe Bravard

    (CREUSET - Centre de Recherche Economique de l'Université de Saint-Etienne - UJM - Université Jean Monnet - Saint-Étienne)

Abstract

In the present paper, we are interested in the one-way flow model of Bala and Goyal (2000) [Bala, V., Goyal, S., 2000. A non-cooperative model of network formation, Econometrica, N. 68 (5), 1181-1229]. We generalize this model by relaxing the authors' assumption concerning the relation between the number of resources obtained by an agent and this agent's payoffs. Firstly, we show that Nash networks are line bases and strict Nash networks are minimum line bases. Secondly, we establish that efficient networks are minimum line bases.

Suggested Citation

  • Pascal Billand & Christophe Bravard, 2005. "A Note on the Characterization of Nash Networks," Post-Print hal-00372481, HAL.
    • Handle: RePEc:hal:journl:hal-00372481
    DOI: 10.1016/j.mathsocsci.2004.10.003
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    References listed on IDEAS

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    1. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
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    Cited by:

    1. Billand, Pascal & Bravard, Christophe & Sarangi, Sudipta, 2012. "Existence of Nash networks and partner heterogeneity," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 152-158.
    2. Pascal Billand & Christophe Bravard & Sudipta Sarangi, 2008. "Existence of Nash networks in one-way flow models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(3), pages 491-507, December.
    3. Sudipta Sarangi & Pascal Billand & Christophe Bravard, 2007. "Existence of Nash Networks in One-Way Flow Models (Revised Version of LSU Working Paper 2006-05)," Departmental Working Papers 2007-02, Department of Economics, Louisiana State University.

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