On the stability of network structures with public goods

Mehtap Işık () and Ünal Zenginobuz ()
Additional contact information
Mehtap Işık: Bogazici University

Economics Bulletin, 2010, vol. 30, issue 3, 2425-2436

Abstract: This paper explores the formation of stable network structures in a model with public goods. The multiplicity of equilibria in the non-cooperative formulation of network formation games brings out further difficulties in analyzing stability of network structures. This contrasts with the cooperative game approach where payoffs for agents are predetermined and thereby the multiplicity of equilibrium issues are sidestepped. We took issue with the multiplicity of equilibrium effort levels exerted on a given network structure, and we suggested different stability definitions for such network structures under multiplicity of equilibria. We demonstrated how these stability notions work for the network structures with four agents where breaking and forming links is costless, and the cost of exerting effort level is linear.

JEL-codes: C7 D8 (search for similar items in EconPapers)
Date: 2010-09-17
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I3-P222.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-10-00496

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().