DEPARTMENT OF ECONOMICS WORKING PAPER SERIES Existence of Nash Networks in One-Way Flow Models
نویسندگان
چکیده
This paper addresses the existence of Nash networks for the one-way flow model of Bala and Goyal (2000) in a number of different settings. We provide conditions for the existence of Nash networks in models where costs and values of links are heterogeneous and players obtain resources from others through the directed path between them. We find that costs of establishing links play a vital role in the existence of Nash networks. Next we examine the existence of Nash networks when there are congestion effects in the model. JEL Classification: C72, D85
منابع مشابه
DEPARTMENT OF ECONOMICS WORKING PAPER SERIES (Non-)Existence and Scope of Nash Networks
For the connections model of strategic network formation, with two-way flow of information and without information decay, specific parameter configurations are given for which Nash networks do not exist. Moreover, existence and the scope of Nash network architectures are briefly discussed. JEL Classification: C72, D85
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The importance of networks is pervasive and now well documented. Among the growing litterature on the formation of networks, a few papers have explored the impact of heterogeneity, although this is a distinctive feature. Galeotti (2006, [3]) is one exception. The author introduces agents heterogeneity in one way flow models of network formation and characterize the architectures of Nash network...
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