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stable and efficient networks in a variety of contexts and under several definitions of efficiency. …
Persistent link: https://www.econbiz.de/10005135109
We propose a simple non-cooperative mechanism of network formation in cost spanning tree problems. The only subgame equilibrium payoff is efficient. Moreover, we extend the result to the case of budget restrictions. The equilibrium payoff can them be easily adapted to the framework of Steiner trees.
Persistent link: https://www.econbiz.de/10005062358