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Network Formation and Potential Games

  • Marco Slikker
  • Anne Van Den Nouweland
Part of the Theory and Decision Library book series (TDLC, volume 27)

Abstract

In this chapter we revisit the network-formation model in strategic form that we saw in chapter 7. We study the conditions under which these strategic-form games satisfy the property that all the information that is necessary to determine Nash equilibria can be captured in a single function on the set of all strategy profiles. If such a function exists, it is called a potential function or just a potential, and a strategic-form game that has a potential is called a potential game. For potential games, the set of strategy profiles that maximize the potential constitute a refinement of Nash equilibrium. For network-formation games that are potential games, we study the network structures that are formed in potential-maximizing Nash equilibria.

Keywords

Nash Equilibrium Potential Function Network Formation Allocation Rule Coalition Structure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Marco Slikker
    • 1
  • Anne Van Den Nouweland
    • 2
  1. 1.Technische Universiteit EindhovenThe Netherlands
  2. 2.University of OregonUSA

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