Operations Research Transactions ›› 2012, Vol. 16 ›› Issue (4): 1-10.

• Original Articles •     Next Articles

Local strategic interaction  in 2-neighborhood on the endogenous network  and its simulations

LI Kang1 GAO Hongwei1  SONG Li1  HU Ping1  WANG Kun1  CHEN Chunrui1   

  1. 1. College of Mathematics, Qingdao University
  • Online:2012-12-15 Published:2012-12-15
  • Contact: GAO Hongwei E-mail:gaosai@public.qd.sd.cn

Abstract: In the context of endogenous network formation, we study local strategic interaction among players within 2-neighborhood. We characterize the equilibrium networks and describe the impact of the link cost on the equilibrium networks and the impact of interaction radius. We illustrate and complement the analytical results by NetLogo simulation program, and the simulation results illustrate that the dynamics of the network formation plays an important role in the equilibrium outcomes. The results of this paper are helpful to solve the interactions in social economics and networks.

Key words: endogenous network formation, 2-neighborhood, local strategic interaction, NetLogo simulation program

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