Stochastic Stability in Network with Decay

39 Pages Posted: 31 Mar 2005

Date Written: March 2005


This paper considers a simple communication network characterized by an endogenous architecture and an imperfect transmission of information. We analyze the process of network formation in a dynamic framework where self - interested individuals can form or delete links and, occasionally, are doing mistakes. Then, using stochastic stability, we identify which network structures the formation process will converge to.

Keywords: Network, Decay, Strategical interaction

JEL Classification: A14, D20, J00

Suggested Citation

Feri, Francesco, Stochastic Stability in Network with Decay (March 2005). FEEM Working Paper No. 40.05. Available at SSRN: or

Francesco Feri (Contact Author)

University of London ( email )

Senate House
Malet Street
London, WC1E 7HU
United Kingdom

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