Subscription Mechanisms for Network Formation
Journal of Economic Theory, 2002, 106, 2, 242-264
MUTUSWAMI, Suresh, WINTER, Eyal, Subscription Mechanisms for Network Formation, Journal of Economic Theory, 2002, 106, 2, 242-264 - http://hdl.handle.net/1814/16575
Retrieved from Cadmus, EUI Research Repository
We analyze a model of network formation where the costs of link formation are publicly known but individual benefits are not known to the social planner. The objective is to design a simple mechanism ensuring efficiency, budget balance, and equity. We propose two mechanisms towards this end; the first ensures efficiency and budget balance but not equity. The second mechanism corrects the asymmetry in payoffs through a two-stage variant of the first mechanism. Journal of Economic Literature Classification Numbers: C71, C72, D20.
Cadmus permanent link: http://hdl.handle.net/1814/16575
Full-text via DOI: 10.1006/jeth.2001.2920
Publisher: Academic Press Inc Elsevier Science
Files associated with this item
There are no files associated with this item.