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We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical monotonicity. The n-player group version always yields efficiency.

Keywords: Efficiency ; Bargaining Protocol ; Counterproposals ; Network Formation ; Transfers ; Externalities ; Groups ; Coalitions

Issue Date: 2008-07

Publication Type: Working or Discussion Paper

PURL Identifier:

Total Pages: 18

JEL Codes: C71; C72; C73; C78

Series Statement: CTN


Record appears in: Fondazione Eni Enrico Mattei (FEEM) > Coalition Theory Network Working Papers

Autor: Nieva, Ricardo


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