2020
DOI: 10.3390/math8010038
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Characteristic Function and Time Consistency for Two-Stage Games with Network Externalities

Abstract: Time consistency is a property of the solution to a cooperative dynamic game which guarantees that this solution remains stable with respect to its revision by players over time. The fulfillment of this property is directly related to the characteristic function and its behavior with the course of the game as any solution is based on this function. In this paper, we will examine the characteristic functions for two economic models with network externalities represented by a two-stage network game using the the… Show more

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Cited by 5 publications
(2 citation statements)
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References 19 publications
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“…In this section, we establish the relationship between the cores for a class of cooperative two-stage network games studied in [20,21] for a general model and in [22] for their applications in public goods provision and market competition. We will define the characteristic functions in the two-stage cooperative network game according to transformation rule (2) when implementing the cooperative agreement.…”
Section: Two-stage Network Gamesmentioning
confidence: 99%
“…In this section, we establish the relationship between the cores for a class of cooperative two-stage network games studied in [20,21] for a general model and in [22] for their applications in public goods provision and market competition. We will define the characteristic functions in the two-stage cooperative network game according to transformation rule (2) when implementing the cooperative agreement.…”
Section: Two-stage Network Gamesmentioning
confidence: 99%
“…To determine the importance of a node in a given network, we use centrality or power measures (see [10,11] for a general review of centrality measures). When it comes to problems modeled by a network, it is very common to use some tools inherited from game theory [12,13]. In particular, cooperative game theory has been used as natural approach to represent the power or centrality of nodes in a network (see for example [14,15]), or also the cohesion of a set of nodes [16].…”
mentioning
confidence: 99%