The computation of pairwise stable networks
Herings,P.J.J. Zhan,Yang
Herings,P.J.J.
Zhan,Yang
Abstract
One of the most important stability concepts for network formation is pairwise stability. We develop a homotopy algorithm that is effective in computing pairwise stable networks for a generic network formation problem. To do so, we reformulate the concept of pairwise stability as a Nash equilibrium of a non-cooperative game played by the links in the network and adapt the linear tracing procedure for non-cooperative games to the network formation problem. As a by-product of our main result, we obtain that the number of pairwise stable networks is generically odd. We apply the algorithm to the connections model and obtain a number of novel insights.
Description
Publisher Copyright: © The Author(s) 2022. corrected publication 2022.
Date
2024-01
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
Computation of equilibria, Connections model, Pairwise stable network, Tracing procedure
Citation
Herings, P J J & Zhan, Y 2024, 'The computation of pairwise stable networks', Mathematical Programming, vol. 203, no. 1-2, pp. 443-473. https://doi.org/10.1007/s10107-022-01791-x
License
info:eu-repo/semantics/openAccess