Date: 2008
Type: Working Paper
Eight Degrees of Separation
Working Paper, EUI MWP, 2008/44
PIN, Paolo, Eight Degrees of Separation, EUI MWP, 2008/44 - https://hdl.handle.net/1814/9890
Retrieved from Cadmus, EUI Research Repository
We present a network formation game whose equilibria are undirected networks. Every connected couple contributes to the aggregate payoff by a fixed quantity, and the outcome is split between players according to the Myerson value allocation rule. This setup shows a wide multiplicity of non-empty equilibria, all of them connected. We show that the efficient equilibria of the game are either the empty network, or a network whose diameter does not exceed the threshold of 8 (i.e. there are no two nodes with distance greater than 8).
Cadmus permanent link: https://hdl.handle.net/1814/9890
ISSN: 1830-7728
Series/Number: EUI MWP; 2008/44
Publisher: European University Institute
Keyword(s): Network formation Myerson value D85