From bilateral two-way to unilateral one-way flow link-formation

  1. Norma Olaizola 1
  2. Federico Valenciano 2
  1. 1 Universidad del País Vasco/Euskal Herriko Unibertsitatea
    info

    Universidad del País Vasco/Euskal Herriko Unibertsitatea

    Lejona, España

    ROR https://ror.org/000xsnr85

  2. 2 Departamento de Economía Aplicada IV, Universidad del País Vasco
Journal:
SERIEs : Journal of the Spanish Economic Association

ISSN: 1869-4195

Year of publication: 2016

Volume: 7

Issue: 2

Pages: 257-278

Type: Article

DOI: 10.1007/S13209-016-0142-9 DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: SERIEs : Journal of the Spanish Economic Association

Abstract

We provide a model that allows for a transition between the simplest variation of two basic models of strategic network formation: Bala and Goyal’s one-way flow model without decay, where links can be unilaterally formed, and a version without decay of Jackson and Wolinsky’s connections model based on bilateral formation of links. In the transitional model introduced here, these two benchmark models appear as extreme cases. We study efficiency and Nash, strict Nash and pairwise Nash stability for the intermediate model. Dynamics are also discussed.

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