On the Interaction between Player Heterogeneity and Partner Heterogeneity in Two-way Flow Strict Nash Networks Report as inadecuate




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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. This is achieved through examining how the interactions between these two assumptions influence important properties of Strict Nash networks. Built upon the findings of Billand et al 2011 and Galeotti et al 2006, which assume exclusive partner heterogeneity and exclusive player heterogeneity respectively, I provide a proposition that generalizes the results of these two models by stating that: i Strict Nash network consists of multiple non-empty components as in Galleotti et al 2006, and ii each non-empty component is a branching or Bi network as in Billand et al 2011. This proposition requires that a certain restriction on link formation cost called Uniform Partner Ranking, which encloses exclusive partner heterogeneity and exclusive player heterogeneity as a specific case, is satisfied. In addition, this paper shows that value heterogeneity plays a relatively less important role in changing the shapes of Strict Nash networks.



Item Type: MPRA Paper -

Original Title: On the Interaction between Player Heterogeneity and Partner Heterogeneity in Two-way Flow Strict Nash Networks-

Language: English-

Keywords: Strict Nash Network, Two-way Flow Network, Information Network, Branching Network, Agent Heterogeneity-

Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative GamesD - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D85 - Network Formation and Analysis: Theory-





Author: Charoensook, Banchongsan

Source: https://mpra.ub.uni-muenchen.de/61310/







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