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Forming Efficient Networks

Forming Efficient Networks

Authors: David Pérez-Castrillo.
BSE Working Paper: 112212 | September 15
Keywords: shapley value , Networks , implementation
JEL codes: C71, C72
shapley value
Networks
implementation

Abstract

In this paper, we suggest a simple sequential mechanism whose subgame perfect equilibria give rise to efficient networks. Moreover, the payoffs received by the agents coincide with their Shapley value in an appropriately defined cooperative game.

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