The Czech Economic Review is published by Charles University in Prague. The journal has been established in year 2007 as a descendant to a traditional Czech-written outlet, Acta Universitatis Carolinae Oeconomica (AUCO). Three issues are published per volume. All articles and communications are available online for free. Printed copies can also be ordered.
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Univerzita Karlova v Praze
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Institut ekonomických studií
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CZECH ECONOMIC REVIEW, Vol 2015 No 1 (2016), 169–183
Reciprocal Equilibria in Link Formation Games
Hannu Salonen
zveřejněno: 19. 09. 2016
Abstract
We study non-cooperative link formation games in which players have to decide how much to invest in relationships with other players. A link between two players is formed, if and only if both make a positive investment. The cost of forming a link can be interpreted as the value of privacy. We analyze the existence of pure strategy equilibria and the resulting network structures with tractable specifications of utility functions. Sufficient conditions for the existence of reciprocal equilibria are given and the corresponding network structure is analyzed. Pareto optimal and strongly stable network structures are studied. It turns out that such networks are often complete.
klíčová slova: link formation games; reciprocal equilibrium; complete network
157 x 230 mm
vychází: 3 x ročně
ISSN: 1802-4696
E-ISSN: 1805-9406