Nota di lavoro // Fondazione Eni Enrico Mattei: Sustainable development 61.2008
We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical monotonicity. The n-player group version always yields efficiency.
Efficiency Bargaining Protocol Counterproposals Network Formation Transfers Externalities Groups Coalitions