Network formation and anti-coordination games

Y. Bramoullé, D. López-Pintado, S. Goyal and F. Vega-Redondo
Int J Game Theory 33, 1-19, 2004.

We study a setting in which individual players choose their partners as well as a mode of behavior in 2×2 anti-coordination games – games where a playerrsquos best response is to choose an action unlike that of her partner. We characterize the equilibrium networks as well as study the effects of network structure on individual behavior. Our analysis shows that both network architecture and induced behavior crucially depend on the value of the cost of forming links. In general, equilibrium configurations are found to be neither unique nor efficient.

This paper at Int J Game Theory

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