Farsightedly stable networks

P.J.J. Herings, A. Mauleon, V. Vannetelbosch

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

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
Original languageEnglish
Title of host publicationCoalitions and Networks, 12 Papers from 20 Years of CTN Workshops
EditorsC. Carraro
Place of PublicationMilano
PublisherFEEM Press
Pages287-314
ISBN (Print)9788890991899
Publication statusPublished - 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