Choosing `Me' and `My Friends': Identity in a Non-Cooperative Network Formation Game with Cost Sharing

Pritha Dev

MPRA Paper from University Library of Munich, Germany

Abstract: This paper introduces the choice of identity characteristics, and, commitments to these characteristics, in a network formation model where links costs are shared. Players want to link to the largest group given that linking costs are decreasing (increasing) in commitments for same (different) identity. We study conditions under which these choices allow for networks with multiple identities. We find that whether the choice of identity itself gives any utility or not, there will be Nash networks featuring multiple identities. Moreover, if the choice of identity directly adds utility, networks with multiple identities will be efficient and survive the dynamic process.

Keywords: Identity; Network Formation; Cost Sharing Links (search for similar items in EconPapers)
JEL-codes: C72 D85 Z13 (search for similar items in EconPapers)
Date: 2010-03
New Economics Papers: this item is included in nep-gth, nep-net and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:21631

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