Stochastic stability in one-way flow networks
This paper considers one-way flow network formation games in which transmission through a series of agents is subject to decay. We analyze the myopic best-response dynamics of network formation games, occasionally perturbed by state-dependent random noises. Specifically, if an agent is isolated or has a direct neighbor who is better paid, it is more likely that the agent will make mistakes. Our main result identifies that only empty and wheel networks are candidates for long-term outcomes.
Year of publication: |
2013
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Authors: | Cui, Zhiwei ; Wang, Shouyang ; Zhang, Jin ; Zu, Lei |
Published in: |
Mathematical Social Sciences. - Elsevier, ISSN 0165-4896. - Vol. 66.2013, 3, p. 410-421
|
Publisher: |
Elsevier |
Saved in:
Online Resource
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