Competition and Networks of Collaboration

Nikita Roketskiy ()

No 12194, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: I develop a model of collaboration between tournament participants in which agents collaborate in pairs, and an endogenous structure of collaboration is represented by a weighted network. The agents are forward-looking and capable of coordination. They value collaboration with others and higher tournament rankings. I use von Neumann-Morgenstern stable sets as a solution. I find stable networks in which agents collaborate only within exclusive groups. Both absence of intergroup collaboration and excessive intragroup collaboration lead to inefficiency. I provide a necessary and sufficient condition for the stability of efficient outcomes in winner-takes-all tournaments. I show that the use of transfers does not repair efficiency.

Keywords: Networks; Tournaments (search for similar items in EconPapers)
JEL-codes: C71 D85 (search for similar items in EconPapers)
Date: 2017-07
New Economics Papers: this item is included in nep-gth, nep-mic, nep-net and nep-ure
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Citations: View citations in EconPapers (1)

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Journal Article: Competition and networks of collaboration (2018)
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