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Communication networks with endogenous link strength and the possibility of gains from diversification

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  • Chiu Ki So

Abstract

We study communication networks where the strength of the direct link between any pair of agents is a concave function of their investments towards each other. We show that the symmetric complete network can be Nash stable and dominate the star architecture in terms of total utility.

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  • Chiu Ki So, 2013. "Communication networks with endogenous link strength and the possibility of gains from diversification," Monash Economics Working Papers 45-13, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2013-45
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2013/index.html
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