Formation of a Communication Network Under Perfect Foresight

Theory and Decision 61 (3):191-204 (2006)
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Abstract

We study the formation of a communication network under perfect foresight. We show the existence of a non-monotonic relationship between the cost of link formation and the total number of links created in stable networks. This result enhances a dilemma between stable and efficient networks

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10.1007/s11238-006-0004-1

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