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Network Formation And Anti-Coordination Games

Author

Listed:
  • Dunia López-Pintado

    (Universidad de Alicante)

  • Fernando Vega Redondo

    (Instituto Valenciano de Investigaciones Económicas)

  • Sanjeev Goyal

    (Queen Mary, University of London)

  • Yann Bramoulle

    (Université de Toulouse)

Abstract

We study a setting in which individual players choose their partners as well as a mode of behavior in 2 x 2 anti-coordination games -- games where a player's best response is to behave differently than the opponent. We characterize the nature of equilibrium networks as well as study the effects of network structure on individual behavior. Our analysis shows that both the network architecture and the induced behavior are crucially dependent on the value of the cost of forming links. In general, the equilibrium configurations are found to be neither unique nor efficient. This conclusion continues to hold if the population game is embedded in a standard evolutionary model of learning, since all equilibria turn out to be stochastically stable.

Suggested Citation

  • Dunia López-Pintado & Fernando Vega Redondo & Sanjeev Goyal & Yann Bramoulle, 2002. "Network Formation And Anti-Coordination Games," Working Papers. Serie AD 2002-25, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2002-25
    as

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    References listed on IDEAS

    as
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    3. Sanjeev Goyal & Fernando Vega-Redondo, 2000. "Learning, Network Formation and Coordination," Tinbergen Institute Discussion Papers 00-093/1, Tinbergen Institute.
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