Stochastic stability in networks with decay

• 成果类型: Article
• 署名作者: Feri, Francesco
• 署名单位: Universita Ca Foscari Venezia; Universita Ca Foscari Venezia
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2006.05.006
• 发表日期: 2007
• 页码: 442-457
• 关键词: network; decay; stochastic stability

摘要

This paper considers a stylized model of network formation in which relations among agents are subject to frictions, as described in Bala and Goyal [A non cooperative model of network formation, Econometrica 68 (2000) 1181-1231]. We analyze the process of network formation in a dynamic framework where self-interested individuals can form or delete links and, occasionally, make mistakes. Then, using stochastic stability, we identify the network structures to which the formation process will converge. (c) 2006 Elsevier Inc. All rights reserved.