We consider two different approaches to describe the formation of social networks under mutual consent and costly communication. First, we consider a network-based approach; in particular Jackson-Wolinsky's concept of pairwise stability. Next, we discuss a non-cooperative game-theoretic...

We investigate the Nash equilibria of game theoretic models of network formation based on explicit consent in link formation. These so-called “consent models” explicitly take account of link formation costs. We provide characterizations of Nash equilibria of such consent models under both...

In this paper we consider four different game-theoretic approaches to describe the formation of social networks under mutual consent and costly communication. First, we consider Jackson-Wolinsky’s concept of pairwise stability. Next, we introduce a stronger version of this concept based on...

Recently a variety of link-based stability concepts have emerged in the literature on game theoretic models of social network formation. We investigate two basic formation properties that establish equivalence between some well known types of stable networks and their natural extensions. These...

We investigate game theoretic models of entwork formation that are based on individual actions only. Our approach is grounded in three simple and realistic principles. (1) Link formation should be a binary process of consent. (2) Link formation should be costly. (3) The class of network payoff...

We examine the process of building social relationships in a non-cooperative game where such link formation is costly and requires mutual consent. We provide a noncooperative foundation for several link-based network stability concepts that have been studied in the literature on network...