Characteristic function and time consistency for two-stage games with network externalities

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Characteristic function and time consistency for two-stage games with network externalities. / Sedakov, Artem.

в: Mathematics, Том 8, № 1, 38, 01.01.2020.

Результаты исследований: Научные публикации в периодических изданиях › статья › Рецензирование

BibTeX

@article{2934637f09ac46b0a5d93a0c76863e11,

title = "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 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.",

keywords = "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",

author = "Artem Sedakov",

year = "2020",

month = jan,

day = "1",

doi = "10.3390/math8010038",

language = "English",

volume = "8",

journal = "Mathematics",

issn = "2227-7390",

publisher = "MDPI AG",

number = "1",

}

RIS

TY - JOUR

T1 - Characteristic function and time consistency for two-stage games with network externalities

AU - Sedakov, Artem

PY - 2020/1/1

Y1 - 2020/1/1

N2 - 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.

AB - 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.

KW - network externalities

KW - cooperation

KW - public goods provision

KW - market competition

KW - time consistency

KW - Time consistency

KW - Cooperation

KW - Market competition

KW - Network externalities

KW - Public goods provision

KW - CONVEXITY

KW - PUBLIC-GOODS

KW - OLIGOPOLY GAMES

UR - http://www.scopus.com/inward/record.url?scp=85080043763&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/babc4263-27e7-3188-86c3-4bcdb8ca4e9c/

U2 - 10.3390/math8010038

DO - 10.3390/math8010038

M3 - Article

VL - 8

JO - Mathematics

JF - Mathematics

SN - 2227-7390

IS - 1

M1 - 38

ER -

ID: 52084246