An allocation rule for dynamic random network formation processes

Jean-François Caulier (), Michel Grabisch and Agnieszka Rusinowska
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Jean-François Caulier: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: Most allocation rules for network games presented in the literature assume that the network structure is fixed. We put explicit emphasis on the construction of networks and examine the dynamic formation of networks whose evolution across time periods is stochastic. Time-series of networks are studied that describe processes of network formation where links may appear or disappear at any period. Moreover, convergence to an efficient network is not necessarily prescribed. Transitions from one network to another are random and ruled by a stochastic process, typically a Markov chain. We propose the link-based scenario allocation rule for such dynamic random network formation processes and provide its axiomatic characterization. By considering a monotone game and a particular (natural) network formation process we recover the link-based flexible network allocation rule of Jackson (2015).

Keywords: Markov chain; link-based allocation rule; dynamic networks; network game; characterization (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-gth and nep-net
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01207823v1
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Published in Economic Theory, 2015, 60 (2), pp.283-313. ⟨10.1007/s00199-015-0879-6⟩

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Related works:
Journal Article: An allocation rule for dynamic random network formation processes (2015)
Working Paper: An allocation rule for dynamic random network formation processes (2015)
Working Paper: An allocation rule for dynamic random network formation processes (2015)
Working Paper: An allocation rule for dynamic random network formation processes (2013)
Working Paper: An allocation rule for dynamic random network formation processes (2013)
Working Paper: An allocation rule for dynamic random network formation processes (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01207823

DOI: 10.1007/s00199-015-0879-6

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