### Abstract

A set of networks G is pairwise farsightedly stable (i) if all possible farsighted pairwise

deviations from any network g G to a network outside G are deterred by the threat of

ending worse off or equally well off, (ii) if there exists a farsighted improving path from

any network outside the set leading to some network in the set, and (iii) if there is no

proper subset of G satisfying conditions (i) and (ii). A non-empty pairwise farsightedly

stable set always exists. We provide a full characterization of unique pairwise

farsightedly stable sets of networks. Contrary to other pairwise concepts, pairwise

farsighted stability yields a Pareto dominant network, if it exists, as the unique

outcome. Finally, we study the relationship between pairwise farsighted stability and

other concepts such as the largest pairwise consistent set and the von Neumann-

Morgenstern pairwise farsightedly stable set.

Datasource: no data

deviations from any network g G to a network outside G are deterred by the threat of

ending worse off or equally well off, (ii) if there exists a farsighted improving path from

any network outside the set leading to some network in the set, and (iii) if there is no

proper subset of G satisfying conditions (i) and (ii). A non-empty pairwise farsightedly

stable set always exists. We provide a full characterization of unique pairwise

farsightedly stable sets of networks. Contrary to other pairwise concepts, pairwise

farsighted stability yields a Pareto dominant network, if it exists, as the unique

outcome. Finally, we study the relationship between pairwise farsighted stability and

other concepts such as the largest pairwise consistent set and the von Neumann-

Morgenstern pairwise farsightedly stable set.

Datasource: no data

Original language | English |
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Title of host publication | Coalitions and Networks, 12 Papers from 20 Years of CTN Workshops |

Editors | C. Carraro |

Place of Publication | Milano |

Publisher | FEEM Press |

Pages | 287-314 |

ISBN (Print) | 9788890991899 |

Publication status | Published - 1 Jan 2015 |

## Cite this

Herings, P. J. J., Mauleon, A., & Vannetelbosch, V. (2015). Farsightedly stable networks. In C. Carraro (Ed.),

*Coalitions and Networks, 12 Papers from 20 Years of CTN Workshops*(pp. 287-314). FEEM Press. http://www.feem.it/userfiles/attach/2015318957394CTN_Completo_low.pdf