2 research outputs found
Link Biased Strategies in Network Formation Games
We show a simple method for constructing an infinite family of graph
formation games with link bias so that the resulting games admits, as a
\textit{pairwise stable} solution, a graph with an arbitrarily specified degree
distribution. Pairwise stability is used as the equilibrium condition over the
more commonly used Nash equilibrium to prevent the occurrence of ill-behaved
equilibrium strategies that do not occur in ordinary play. We construct this
family of games by solving an integer programming problem whose constraints
enforce the terminal pairwise stability property we desire.Comment: 5 pages, 3 figure
A Game Theoretic Perspective on Network Topologies
As an alternative view to the graph formation models in the statistical
physics community, we introduce graph formation models using \textit{network
formation} through selfish competition as an approach to modeling graphs with
particular topologies. We further investigate a specific application of our
results to collaborative oligopolies. We extend the results of Goyal and Joshi
(S. Goyal and S. Joshi. Networks of collaboration in oligopoly. Games and
Economic behavior, 43(1):57-85, 2003), who first considered the problem of
collaboration networks of oligopolies and showed that under certain linear
assumptions network collaboration produced a stable complete graph through
selfish competition. We show with nonlinear cost functions and player payoff
alteration that stable collaboration graphs with an arbitrary degree sequence
can result.Comment: 25 pages, this revised version has been resubmitted to Computational
and Mathematical Organization Theory after being reviewe