An allocation rule for dynamic random network formation processes

Jean-François Caulier (), Michel Grabisch and Agnieszka Rusinowska

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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 yield a Markov chain. We propose the link-based 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

Keywords: Dynamic networks; network game; link-based allocation rule; Markov chain; characterization (search for similar items in EconPapers)
JEL-codes: C71 D85 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2013-08
New Economics Papers: this item is included in nep-cdm, nep-gth, nep-net and nep-tre
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ftp://mse.univ-paris1.fr/pub/mse/CES2013/13063.pdf (application/pdf)

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 (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)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:13063

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