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To share the fixed cost of a communication network, the private cost method allocates to each subscriber the cost of his dedicated terminal devices. The external cost method shares the connecting cost of user i between all of his correspondents in proportion of their traffic with i. All convex...
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Suppose that individual payoffs depend on the network connecting them. Consider the following simultaneous move game of network formation: players announce independently the links they wish to form, and links are formed only under mutual consent. We provide necessary and sufficient conditions on...
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A tragedy of the commons appears when the users of a common resource have incentives to exploit it more than the socially efficient level. We analyze the situation when the tragedy of the commons is embedded in a network of users and sources. Users play a game of extractions, where they decide...
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