A note on network formation with decay

Nobuo Matsubayashi, Shigetaka Yamakawa

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)


This paper studies an endogenous network formation with decay. We introduce a strategic form game based on a simple bilateral cost allocation rule. We show that a strong Nash equilibrium of this game always exists and necessarily achieves efficient networks.

Original languageEnglish
Pages (from-to)387-392
Number of pages6
JournalEconomics Letters
Issue number3
Publication statusPublished - 2006 Dec


  • Decay
  • Efficient network
  • Endogenous cost allocation
  • Network formation
  • Strong Nash equilibrium

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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