Symmetric Convex Games and Stable Structures

Abstract

We study the model of link formation that was introduced by Aumann and Myerson (1988) and focus on symmetric convex games with transferable utilities. We answer an open question in the literature by showing that in a specific symmetric convex game with six players a structure that results in the same payoffs as the full cooperation structure can be formed according to a subgame perfect Nash equilibrium.symmetric convex game;undirected graph;link formation;stable structures