Team Formation in a Network
Data
01.01.2009
01.01.2009
Autori
Markus Kinateder
Codice JEL
C72,C73,D85
C72,C73,D85
Parole chiave:
Dynamic Competitive Group Formation,Imperfect Information
Dynamic Competitive Group Formation,Imperfect Information
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
Two project leaders (or entrepreneurs) in a network, which captures social relations, recruit players in a strategic, competitive and time-limited process. Each team has an optimal size depending on the project’s quality. This is a random variable with a commonly known distribution. Only the corresponding project leader observes its realization. Any decision is only observed by the involved agents. The set of pure strategy Sequential Equilibria is characterized by giving an algorithm that selects one equilibrium at a time. An agent’s expected payoff is related to his position in the network, though no centrality measure in the literature captures this relation. A social planner frequently would achieve a higher welfare.