Partner Heterogeneity Increases the Set of Strict Nash Networks

Sudipta Sarangi, Pascal Billand and Christophe Bravard

Departmental Working Papers from Department of Economics, Louisiana State University

Abstract: Galeotti et al. (2006, [2]) show that all minimal networks can be strict Nash in two-way flow models with full parameter heterogeneity while only inward pointing stars and the empty network can be strict Nash in the homogeneous parameter model of Bala and Goyal (2000, [1]). In this note we show that the introduction of partner heterogeneity plays a major role in substantially increasing the set of strict Nash equilibria.

Date: 2009-10
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Persistent link: https://EconPapers.repec.org/RePEc:lsu:lsuwpp:2009-10

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