@techreport{21942747052f4b39a1900e43419be569,
title = "The computation of pairwise stable networks",
abstract = "One of the most important stability concepts for network formation is pairwise stability. We develop a homotopy algorithm that is effective in computing pairwise stable networks for a generic network formation problem. To do so, we reformulate the concept of pairwise stability as a Nash equilibrium of a non-cooperative game played by the links in the network and adapt the linear tracing procedure for non-cooperative games to the network formation problem. As a by-product of our main result, we obtain that the number of pairwise stable networks is generically odd. We apply the algorithm to the connections model.",
keywords = "pairwise stable network, computation of equilibria, tracing procedure",
author = "Herings, {P. Jean-Jacques} and Yang Zhan",
year = "2021",
month = jan,
day = "26",
doi = "10.26481/umagsb.2021004",
language = "English",
series = "GSBE Research Memoranda",
publisher = "Maastricht University, Graduate School of Business and Economics",
number = "004",
address = "Netherlands",
type = "WorkingPaper",
institution = "Maastricht University, Graduate School of Business and Economics",
}