@bertil.hatt

Formation of a communication network under perfect foresight

. Theory and Decision, 61 (3): 191--204 (2006)

Abstract

I consider a commnication network on which a sequential process of network formation under perfect foresight is set up. I point out the existence, for sufficiently high values of cost of link formation, of a non monotonic relationship between he cost of link formation and the total number of links created in stable networks; this result enhances a dilemma between stable and efficient network.

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March 2008

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