Partner Heterogeneity Increases the Set of Strict Nash Networks*
نویسندگان
چکیده
Galeotti et al. (2006, [2]) show that all minimal networks can be strict Nash in two-way flow models with full parameter heterogeneity while only inward pointing stars and the empty network can be strict Nash in the homogeneous parameter model of Bala and Goyal (2000, [1]). In this note we show that the introduction of partner heterogeneity plays a major role in substantially increasing the set of strict Nash equilibria. JEL Classification: C72, D85
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DEPARTMENT OF ECONOMICS WORKING PAPER SERIES Partner Heterogeneity Increases the Set of Strict Nash Networks
Galeotti et al. (2006, [2]) show that all minimal networks can be strict Nash in two-way flow models with full parameter heterogeneity while only inward pointing stars and the empty network can be strict Nash in the homogeneous parameter model of Bala and Goyal (2000, [1]). In this note we show that the introduction of partner heterogeneity plays a major role in substantially increasing the set...
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