2009
DOI: 10.1007/s00182-009-0182-5
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Endogenous formation of networks for local public goods

Abstract: Networks, Local public goods, Sequential bargaining game, Stationary perfect equilibrium, Core, C78, D85, H41,

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Cited by 11 publications
(8 citation statements)
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“…We define the ability that each author creates original knowledge as creativity, and measure it via knowledge creation cost, c. For the time being, we focus on homogeneous knowledge creativity of players but will show in Section 3.2 and Section 4 that the main insight is robust to differentiated knowledge capabilities 10 .…”
Section: Individual Author's Problemmentioning
confidence: 99%
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“…We define the ability that each author creates original knowledge as creativity, and measure it via knowledge creation cost, c. For the time being, we focus on homogeneous knowledge creativity of players but will show in Section 3.2 and Section 4 that the main insight is robust to differentiated knowledge capabilities 10 .…”
Section: Individual Author's Problemmentioning
confidence: 99%
“…The URL of the Electronic Companion is provided at the end of this paper. 10. In Section 3.2 and Proposition 4 of Section 4 we modify the cost of knowledge creation to be individual-specific, and therefore differentiates knowledge capabilities.…”
Section: Individual Author's Problemmentioning
confidence: 99%
See 1 more Smart Citation
“…7 See for example, Allouch (2015Allouch ( , 2017, Baetz (2015), Cho (2010), Elliott and Golub (2019), and Kinateder and Merlino (2017), model an agent benefits from the contributions of not only those who nominated him but also those who he himself nominated. This ability to piggy back on the (potentially large) contributions of other agents helps the system rule out inefficient equilibria.…”
Section: Introductionmentioning
confidence: 99%
“…Models of sequential network formation were introduced by Aumann and Myerson (), in which formations of links are sequentially proposed, and players on both sides of links decide whether to approve the connection. An institutional detail is added by Cho () applying the framework of sequential bargaining, in which the level of local public goods and the shape of the network are both proposed, and players involved in the network decide whether to approve the proposal through unanimous votes. My model also focuses on the collective decision‐making of network formation, but with the assumption of multistage voting and sophisticated voting by players.…”
Section: Introductionmentioning
confidence: 99%