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Journal of Economic Theory and Econometrics
Journal of the Korean Econometric Society
On the Interaction between Player Heterogeneity and Partner Heterogeneity in Two-way Flow Strict Nash Networks
Vol.26, No.3, September 2015, 15–34
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Banchongsan Charoensook
(Department of International Business, Keimyung University)
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Abstract
This paper brings together analyses of two-way flow Strict Nash networks under exclusive player heterogeneity assumption and exclusive partner heterogeneity assumption studied by Galeotti et al. (2006) and Billand et al. (2011) respectively. We provide a proposition that generalizes the results of thesemodels by stating that: (i) StrictNash network consists of multiple non-empty components as in Galeotti et al. (2006), and (ii) each non-empty component is a branching or $B_i$ network as in Billand et al. (2011). This proposition requires that a restriction on link formation cost, which is called Uniform Partner Ranking, is satisfied.
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Keywords
Network Formation, Strict Nash Network, Two-way Flow Network, Branching Network, Agent Heterogeneity |
JEL classification codes
C72, D85 |
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