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Computing Perfect Pairwise Stable Networks
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DOI：10.1007/s10479-025-06657-x.png)
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Abstract
En 中文
This paper is concerned with the selection and computation of perfect pairwise stable networks, introduced in Bich and Teteryatnikova (2023) as a refined notion of pairwise stable networks. We reformulate the concept of perfect pairwise stability as a trembling-hand perfect equilibrium of a non-cooperative game played by the links in the network. We adapt a variant of linear tracing procedure for non-cooperative games to the network formation game. We apply the algorithm to several models in the literature and obtain a number of novel insights.
Keywords:
Network formation game
Perfect pairwise stable network
Equilibrium computation
Weighted networks