Operations Research Transactions ›› 2012, Vol. 16 ›› Issue (4): 31-40.

• Original Articles • Previous Articles     Next Articles

The structure of the equilibrium network and the absorbing set based on strategic interaction on the endogenous infinite lattice

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

  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: This paper deals with strategic interaction model based on the endogenous infinite lattice. The properties of the equilibrium and the tendency of players' strategy are the research objective. In every period of the dynamic process, players update their strategy at the same time. We study how the relationship between the cost of link formation and the payoff influences the equilibrium structure and the absorbing set. The main contribution of the paper is combining the endogenous network with the strategic interaction on the endogenous infinite lattice. We also give the accurate characteristics of the equilibrium structure and the absorbing set with different parameters.

Key words: endogenous network, infinite lattice, strategic interaction, equilibrium structure, absorbing set

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