Core-Periphery Networks and (Limited) Farsightedness

In a simple model of distance-based utility, we show that core-periphery networks violate pairwise stability but often satisfy horizon-$K$ farsighted stability [Herings et al. 2019] for small enough $K$. Our results hold despite the fact that agents are identical and preferences violate strategic complementarity. The core-periphery networks we consider are different from those in the strategic network formation literature, such as nested split graphs, but bear resemblance to many empirical networks