We present a network formation game whose equilibria are undirected networks. Every connected couple contributes to the aggregate payoff by a fixed quantity, and the outcome is split between players according to the Myerson value allocation rule. This setup shows a wide multiplicity of non-empty equilibria, all of them connected.Weshow that the efficient equilibria of the game are either the empty network, or a network whose diameter does not exceed a threshold of 8 (i.e. there are no two nodes with a distance greater than 8).

Pin, P. (2011). Eight Degrees of Separation. RESEARCH IN ECONOMICS, 65, 259-270.

Eight Degrees of Separation

PIN, PAOLO
2011-01-01

Abstract

We present a network formation game whose equilibria are undirected networks. Every connected couple contributes to the aggregate payoff by a fixed quantity, and the outcome is split between players according to the Myerson value allocation rule. This setup shows a wide multiplicity of non-empty equilibria, all of them connected.Weshow that the efficient equilibria of the game are either the empty network, or a network whose diameter does not exceed a threshold of 8 (i.e. there are no two nodes with a distance greater than 8).
2011
Pin, P. (2011). Eight Degrees of Separation. RESEARCH IN ECONOMICS, 65, 259-270.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11365/28993
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