Network formation and coordination games

Berninghaus, Siegfried ; Vogt, Bodo

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URN: urn:nbn:de:bsz:180-madoc-27697
Document Type: Working paper
Year of publication: 2003
The title of a journal, publication series: None
Publication language: English
Institution: School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series: Sonderforschungsbereich 504 > Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung (Laufzeit 1997 - 2008)
Subject: 300 Social sciences, sociology, anthropology
Classification: JEL: C92 C72 ,
Subject headings (SWD): Spieltheorie , Netzwerk , Theorie
Individual keywords (German): Nachbarschaftsökonomie
Keywords (English): Coordination games , network formation , local interaction , equilibrium selection
Abstract: A population of players is considered in which each player may select his neighbors in order to play a 2x2 coordination game with each of them. We analyze how the payoffs in the underlying coordination game effect the resulting equilibrium neighborhood resp. network structure. Depending on the size of the communication costs the resulting equilibrium networks may be characterized by bipartite graphs if the coordination game is of the Hawk/Dove type while networks show a tendency to build complete or disconnected graphs if neighbors play a pure coordination game.
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