Bi and Branching Strict Nash Networks in Two-Way Flow Models: A Generalized Sufficient Condition
23 Pages Posted: 25 May 2018
Date Written: May 18, 2018
Bi and branching networks are two classes of minimal networks often found in the literatures of two-way flow Strict Nash networks. Why so? In this paper, we answer this question by establishing a generalized condition that holds together many models in the literature, and then show that this condition is sufficient to guarantee their common result: every non-empty component of minimal SNN is either a branching or Bi network. This paper, therefore, contributes to the literature by providing a generalization of several existing works in the literature of two-way flow Strict Nash networks.
Keywords: Network Formation, Strict Nash Network, Two-way Flow Network, Branching Network
JEL Classification: C72, D85
Suggested Citation: Suggested Citation