Online Appendix for 'Competition and Networks of Collaboration'

20 Pages Posted: 13 Aug 2018

See all articles by Nikita Roketskiy

Nikita Roketskiy

University College London - Department of Economics

Date Written: September 2017

Abstract

I develop a model of collaboration between tournament participants in which agents collaborate in pairs, and an endogenous structure of collaboration is represented by a weighted network. The agents are forward-looking and capable of coordination; they value collaboration with others and higher tournament rankings. I use von Neumann-Morgenstern stable sets as a solution. I find stable networks in which agents collaborate only within exclusive groups. Both an absence of intergroup collaboration and excessive intragroup collaboration lead to inefficiency. I provide a necessary and sufficient condition for the stability of efficient outcomes in winner-takes-all tournaments. I show that the use of transfers does not repair efficiency.

Keywords: Network, Collaboration, Farsighted Agent, Stable Set, Tournament

JEL Classification: D85, C71

Suggested Citation

Roketskiy, Nikita, Online Appendix for 'Competition and Networks of Collaboration' (September 2017). Available at SSRN: https://ssrn.com/abstract=3220682 or http://dx.doi.org/10.2139/ssrn.3220682

Nikita Roketskiy (Contact Author)

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom

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