EconPapers    
Economics at your fingertips  
 

Bounded rationality and repeated network formation

Sylvain Béal and Nicolas Querou

Post-Print from HAL

Abstract: We define a finite-horizon repeated network formation game with consent and study the differences induced by two levels of individual rationality. Perfectly rational players will remain unconnected at the equilibrium, while nonempty equilibrium networks may form when players are assumed to behave as finite automata of limited complexity. We provide structural properties of the sequences of networks which are likely to form in Nash and subgame perfect Nash equilibria of the repeated game. For instance, players can form totally different connected networks at each period or the sequence of networks can exhibit a total order relationship.

Keywords: Repeated network formation game; Two-sided link formation costs; Bounded rationality; Automata; Subgame perfection (search for similar items in EconPapers)
Date: 2007-07-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Mathematical Social Sciences, 2007, 54 (1), pp.71-89. ⟨10.1016/j.mathsocsci.2007.03.003⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Bounded rationality and repeated network formation (2007) Downloads
Working Paper: Bounded Rationality and Repeated Network Formation (2006) Downloads
Working Paper: Bounded Rationality and Repeated Network Formation (2006) Downloads
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:hal:journl:ujm-00162449

DOI: 10.1016/j.mathsocsci.2007.03.003

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-24
Handle: RePEc:hal:journl:ujm-00162449