Equilibrium refinements for the network formation game

Date

2019-01

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Source Title

Review of Economic Design

Print ISSN

1434-4742

Electronic ISSN

1434-4750

Publisher

Springer

Volume

23

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1-2

Pages

13 - 25

Language

English

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Abstract

This paper examines a normal form game of network formation due to Myerson (Game theory: analysis of conflict, Harvard University Press, Cambridge, 1991). All players simultaneously announce the links they wish to form. A link is created if and only if there is mutual consent for its formation. The empty network is always a Nash equilibrium of this game. We define a refinement of Nash equilibria that we call trial perfect. We show that the set of networks which can be supported by a pure strategy trial perfect equilibrium coincides with the set of pairwise-Nash equilibrium networks, for games with link-responsive payoff functions.

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Published Version (Please cite this version)