On the existence of Pairwise stable weighted networks

Philippe Bich () and Lisa Morhaim
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Philippe Bich: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Lisa Morhaim: CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas

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Abstract: We provide the existence of pairwise stable weighted networks under assumptions similar to Nash theorem. In particular, contrarily to the case of unweighted networks, the existence of closed improving cycles does not prevent the existence of Pairwise stable weighted networks. Then, we extend our existence result, allowing payoffs to depend on some game-theoretic strategies. Many applications are given.

Keywords: Pairwise Stable Network; Weighted Network (search for similar items in EconPapers)
Date: 2017-07-19
New Economics Papers: this item is included in nep-gth
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