Networks with Group Counterproposals
Efficiency,Bargaining Protocol,Counterproposals,Network Formation,Transfers,Externalities,Groups,Coalitions
Climate Change and Sustainable Development
We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical monotonicity. The n-player group version always yields efficiency.