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Network Formation in Symmetric 2x2 Games

Berninghaus, Siegfried K.; Vogt, Bodo

A population of players is considered in which each agent can select her neighbors in
order to play a symmetric 2£2 game with each of them. The result of the simultaneous
neighborhood choice of each agent is a network on the population from. We analyze all
types of 2 £ 2 games and show how the payo® structure in the 2 £ 2 games a®ects the
resulting equilibrium networks. Depending on the size of the communication costs the
resulting equilibrium networks may be characterized by bipartite graphs if the coordina-
tion game is of the Hawk/Dove type while networks show a tendency to build complete
or disconnected graphs if agents play a pure coordination game. Furthermore, for each
2 £ 2 game we determine the equilibrium strategy distribution which is realized in the
equilibrium networks.

Zugehörige Institution(en) am KIT Institut für Wirtschaftstheorie und Operations Research (WIOR)
Sonderforschungsbereich 504 der Universität Mannheim (SFB 504)
Publikationstyp Forschungsbericht
Jahr 2004
Sprache Englisch
Identifikator KITopen-ID: 1000004141
Verlag Univ., Mannheim
Serie Working paper series. SonderForschungsBereich 504 ; 04-50
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