Strategic formation of homogeneous bargaining networks

B-Tier
Journal: Games and Economic Behavior
Year: 2017
Volume: 106
Issue: C
Pages: 51-74

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study a model of strategic network formation prior to a Manea (2011a) bargaining game: ex ante homogeneous players form costly undirected links, anticipating expected equilibrium payoffs from the subsequent bargaining game. Assuming patient players, we provide a complete characterization of generically pairwise stable networks: specific unions of separated pairs, odd circles, and isolated players constitute this class. We also show that many other structures, such as larger trees or unbalanced bipartite networks, cannot be pairwise stable at all. The analysis implies that the diversity of possible bargaining outcomes is small in (generically) pairwise stable networks.

Technical Details

RePEc Handle
repec:eee:gamebe:v:106:y:2017:i:c:p:51-74
Journal Field
Theory
Author Count
2
Added to Database
2026-02-02