DOI

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 theory developed for this class of games. For a network game with positive externalities represented by a public goods provision model, we demonstrate a sufficient condition for time consistency. For a network game with negative externalities represented by a market competition model, we show that the cooperative solution is always time consistent.
Original languageEnglish
Article number38
Number of pages9
JournalMathematics
Volume8
Issue number1
DOIs
StatePublished - 1 Jan 2020

    Research areas

  • network externalities, cooperation, public goods provision, market competition, time consistency, Time consistency, Cooperation, Market competition, Network externalities, Public goods provision, CONVEXITY, PUBLIC-GOODS, OLIGOPOLY GAMES

    Scopus subject areas

  • Mathematics(all)

ID: 52084246