caa a22 4500 475739558 CHVBK 20180406123456.0 cr unu---uuuuu 170329e20000901xx s 000 0 eng 10.1007/s100580000019 doi (NATIONALLICENCE)springer-10.1007/s100580000019 A strategic analysis of network reliability [Elektronische Daten] [Venkatesh Bala, Sanjeev Goyal] : Abstract. We consider a non-cooperative model of information networks where communication is costly and not fully reliable. We examine the nature of Nash networks and efficient networks. We find that if the society is large, and link formation costs are moderate, Nash networks as well as efficient networks will be ‘super-connected' i.e. every link is redundant in the sense that the network remains connected even after the link is deleted. This contrasts with the properties of a deterministic model of information decay, where Nash networks typically involve unique paths between agents. We also find that if costs are very low or very high, or if links are highly reliable then there is virtually no conflict between efficiency and stability. However, for intermediate values of costs and link reliability, Nash networks may be underconnected relative to the social optimum. Springer-Verlag Berlin Heidelberg, 2000 JEL Classification: D82, D83 nationallicence Key words: Networks, coordination games, communication nationallicence Bala Venkatesh Department of Economics, McGill University, 855 Sherbrooke Street West, Montreal, Canada H3A 1A8 (e-mail: vbalA2001@yahoo.com), CA aut Goyal Sanjeev Econometric Institute, Erasmus University, 3000 DR, Rotterdam, The Netherlands (e-mail: goyal@few.eur.nl), NL aut https://doi.org/10.1007/s100580000019 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s100580000019 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Bala Venkatesh Department of Economics, McGill University, 855 Sherbrooke Street West, Montreal, Canada H3A 1A8 (e-mail: vbalA2001@yahoo.com), CA aut NATIONALLICENCE 700 1- Goyal Sanjeev Econometric Institute, Erasmus University, 3000 DR, Rotterdam, The Netherlands (e-mail: goyal@few.eur.nl), NL aut Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer