Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53419 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorPage, Frank H.en
dc.contributor.authorWooders, Myrna H.en
dc.date.accessioned2011-12-15T11:34:50Z-
dc.date.available2011-12-15T11:34:50Z-
dc.date.issued2009-
dc.identifier.urihttp://hdl.handle.net/10419/53419-
dc.description.abstractIn all social and economic interactions, individuals or coalitions choose not only with whom to interact but how to interact, and over time both the structure (the with whom) and the strategy (the how) of interactions change. Our objectives here are to model the structure and strategy of interactions prevailing at any point in time as a directed network and to address the following open question in the theory of social and economic network formation: given the rules of network and coalition formation, the preferences of individuals over networks, the strategic behavior of coalitions in forming networks, and the trembles of nature, what network and coalitional dynamics are likely to emerge and persist. Our main contributions are (i) to formulate the problem of network and coalition formation as a dynamic, stochastic game, (ii) to show that this game possesses a stationary correlated equilibrium (in network and coalition formation strategies), (iii) to show that, together with the trembles of nature, this stationary correlated equilibrium determines an equilibrium Markov process of network and coalition formation, and (iv) to show that this endogenous process possesses a finite, nonempty set of ergodic measures, and generates a finite, disjoint collection of nonempty subsets of networks and coalitions, each constituting a basin of attraction. We also extend to the setting of endogenous Markov dynamics the notions of pairwise stability (Jackson-Wolinsky, 1996), strong stability (Jacksonvan den Nouweland, 2005), and Nash stability (Bala-Goyal, 2000), and we show that in order for any network-coalition pair to persist and be stable (pairwise, strong, or Nash) it is necessary and sufficient that the pair reside in one of finitely many basins of attraction. The results we obtain here for endogenous network dynamics and stochastic basins of attraction are the dynamic analogs of our earlier results on endogenous network formation and strategic basins of attraction in static, abstract games of network formation (Page and Wooders, 2008), and build on the seminal contributions of Jackson and Watts (2002), Konishi and Ray (2003), and Dutta, Ghosal, and Ray (2005).en
dc.language.isoengen
dc.publisher|aFondazione Eni Enrico Mattei (FEEM) |cMilanoen
dc.relation.ispartofseries|aNota di Lavoro |x28.2009en
dc.subject.jelA14en
dc.subject.jelC71en
dc.subject.jelC72en
dc.subject.ddc330en
dc.subject.keywordEndogenous Network Dynamicsen
dc.subject.keywordDynamic Stochastic Games of Network Formationen
dc.subject.keywordEquilibrium Markov Process of Network Formationen
dc.subject.keywordBasins of Attractionen
dc.subject.keywordHarris Decompositionen
dc.subject.keywordErgodic Probability Measuresen
dc.subject.keywordDynamic Path Dominance Coreen
dc.subject.keywordDynamic Pairwise Stabilityen
dc.titleEndogenous network dynamics-
dc.typeWorking Paperen
dc.identifier.ppn645050156en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

Files in This Item:
File
Size
488.62 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.