EconNWFormation

EconNWFormation - A Network Formation Game for Bipartite...

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A Network Formation Game for Bipartite Exchange Economies [Even-Dar, K. & Suri]
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Bipartite Exchange Economies Population of N buyers and N sellers 2 abstract commodities, “cash” and “wheat” Buyers have: An endowment of 1 unit of cash Utility only for wheat (exact form unimportant) Sellers have: An endowment of 1 unit of wheat Utility only for cash Bipartite graph between buyers and sellers Can only exchange goods with neighbors Rationality Must always exchange only with neighbors offering best prices (rates) One-shot game; no resale Previous work: Network given exogenously Including for many commodities, general utility functions, asymmetric endowments, etc. Prices for the same good may vary depending on network structure! No price/wealth variation in Erdos-Renyi Price variation a root of N in Preferential Attachment Can create networks with any rational price
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EconNWFormation - A Network Formation Game for Bipartite...

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