Template-Type: ReDIF-Paper 1.0
Title: Network Potentials
Author-Name: Subhadip Chakrabarti
Author-Name: Robert P. Gilles
Author-Email: 
Classification-JEL: C72, C79, D85
Keywords: Network formation; pairwise stability; potential functions
Abstract: A network payoff function assigns a utility to all participants in a (social) network.
	In this paper we discuss properties of such network payoff functions that
	guarantee the existence of certain types of pairwise stable networks and the convergence
	of certain network formation processes. In particular we investigate
	network payoff functions that admit an exact network potential or an ordinal
	network potential. We relate these network potentials to exact and ordinal potentials
	of a non-cooperative network formation game based on consent in link
	formation. Our main results extend and strengthen the current insights in the
	literature on game theoretic approaches to social network formation.
Note: 
Length: 47
Creation-Date: 2005-10
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse28_2005.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse28_2005