| 来源类型 | FEEM working papers "Note di lavoro" series
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| 规范类型 | 论文
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| Network Formation with Endogenous Decay |
| Francesco Feri
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| 发表日期 | 2005
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| 出处 | Climate Change and Sustainable Development
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| 出版年 | 2005
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| 语种 | 英语
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| 摘要 | This paper considers a communication network characterized by an endogenous architecture and an imperfect transmission of information as in Bala and Goyal (2000). We propose a similar network's model with the difference that it is characterized by an endogenous rate of information decay. Endogenous decay is modelled as dependent on the result of a coordination game, played by every pair of directly linked agents and characterized by 2 equilibria: one efficient and the other risk dominant. Differently from other models, where the network represents only a channel to obtain information or to play a game, in our paper the network has an intrinsic value that depends on the chosen action in the coordination game by each participant. Moreover the endogenous network structure affects the play in the coordination game as well as the latter affects the network structure. The model has a multiplicity of equilibria and we produce a full characterization of those are stochastically stable. For sufficiently low link costs we find that in stochastically stable states network structure is ever efficient; individuals can be coordinated on efficient as well as on risk dominant action depending on the decay difference among the two equilibria in the single coordination game. For high link costs stochastically stable states can display networks that are not efficient; individuals are never coordinated on the efficient action. |
| 特色分类 | A14,D20,J00
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| 关键词 | Network,Decay,Strategical interaction
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| URL | https://www.feem.it/en/publications/feem-working-papers-note-di-lavoro-series/network-formation-with-endogenous-decay/
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| 来源智库 | Fondazione Eni Enrico Mattei (Italy)
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/117148
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推荐引用方式
GB/T 7714 |
Francesco Feri. Network Formation with Endogenous Decay. 2005.
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文件名：
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NDL2005-035.pdf
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格式：
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Adobe PDF
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