Networks and Farsighted Stability

Page, Frank H.,, Myrna Wooders and Samir Kamat

No 269573, Economic Research Papers from University of Warwick - Department of Economics

Abstract: We make two main contributions to the theory of economic and social network formation. First, we introduce the notion of a network formation network or a supernetwork. Supernetworks provide a framework in which we can formally define and analyze farsightedness in network formation. Second, we introduce a new notion of equilibrium corresponding to farsightedness. In particular, we introduce the notion of a farsightedly basic network, as well as the notion of a farsighted basis, and we show that all supernetworks possess a farsighted basis. A farsightedly basic network contained in the farsighted basis of a given supernetwork represents a possible final resting point (or absorbing state) of a network formation process in which agents behave farsightedly. Given the supernetwork representation of the rules governing network formation and the preferences of the individuals, a farsighted basis contains networks which are likely to emerge and persist if individuals behave farsightedly.

Keywords: Agricultural and Food Policy; Public Economics; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 26
Date: 2003-10-10
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Related works:
Journal Article: Networks and farsighted stability (2005)
Working Paper: Networks and Farsighted Stability (2004)
Working Paper: Networks and Farsighted Stability (2004)
Working Paper: Networks and Farsighted Stability (2003)
Working Paper: Networks and Farsighted Stability (2002)
Working Paper: NETWORKS AND FARSIGHTED STABILITY (2002)
Working Paper: NETWORKS AND FARSIGHTED STABILITY (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:269573

DOI: 10.22004/ag.econ.269573

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