FEEM working papers "Note di lavoro" series
2018 .012

Bi and Branching Strict Nash Networks in Two-way Flow Models: a Generalized Sufficient Condition


Authors: Banchongsan Charoensook
Series: Economic Theory
Editor: Matteo Manera
Keywords: Network Formation, Strict Nash Network, Two-way Flow Network, Branching Network
JEL n.: C72, D85

Abstract

Bi and branching networks are two classes of minimal networks often found in the literatures of two-way flow Strict Nash networks. Why so? In this paper, we answer this question by establishing a generalized condition that holds together many models in the literature, and then show that this condition is sufficient to guarantee their common result: every non-empty component of minimal SNN is either a branching or Bi network. This paper, therefore, contributes to the literature by providing a generalization of several existing works in the literature of two-way flow Strict Nash networks.

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Suggested citation: Charoensook, B. (2018), 'Bi and Branching Strict Nash Networks in Two-way Flow Models: a Generalized Sufficient Condition', Nota di Lavoro 12.2018, Milano, Italy: Fondazione Eni Enrico Mattei


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