 Pairwise stable networks in homogeneous societies with weak link externalitiesTim Hellmann European Journal of Operational Research, 2021, vol. 291, issue 3, 1164-1179 Abstract: We study general properties of pairwise stable and pairwise Nash stable networks when players are ex-ante homogeneous. Rather than assuming a particular functional form of utility, we impose general link externality conditions on utility such as ordinal convexity and ordinal strategic complements. Depending on these rather weak notions of link externalities, we show that pairwise Nash stable networks of various structure exist. For stronger versions of the convexity and strategic complements conditions, we are even able to characterize all pairwise stable networks: they are nested split graphs. We illustrate these results with many examples from the literature, including utility functions that arise from games with strategic complements played on the network and utility functions that depend on centrality measures such as Bonacich centrality. Keywords: Network formation; Noncooperative games; Convexity; Strategic complements (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:291:y:2021:i:3:p:1164-1179 DOI: 10.1016/j.ejor.2020.09.025 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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