Leth Hougaard, J. and Tvede, M. orcid.org/0000-0003-0566-7026 (2025) Implementation of welfare maximizing networks. Working Paper. Sheffield Economic Research Paper Series (2025005). Department of Economics, University of Sheffield ISSN 1749-8368
Abstract
We consider network formation. A set of locations can be connected in various network configurations. Every network has a cost and every agent has an individual value of every network. A planner aims at implementing a welfare maximizing network and allocating the resulting cost, but information is asymmetric: agents are fully informed and the planner is ignorant. Full implementation in Nash and strong Nash equilibria is studied. We show the correspondence consisting of welfare maximizing networks and individually rational cost allocations is implementable. We construct a minimal Nash implementable, welfare maximizing, and individually rational solution in the set of upper hemi-continuous and Nash implementable solutions. It is not possible to have full implementation single valued solutions such as the Shapley value.
Metadata
Item Type: | Monograph |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2025 The Author(s). For reuse permissions, please contact the Author(s). The Sheffield Economic Research Paper Series (SERPS) offers a forum for the research output of the Department of Economics, University of Sheffield. Papers are reviewed for quality and presentation by two internal referees and a departmental editor. However, the contents and opinions expressed remain the responsibility of the author(s). Comments are welcomed and should be addressed to the individual author(s). |
Keywords: | Networks; Welfare maximization; Nash Implementation; Strong Nash Implementation |
Dates: |
|
Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) > Sheffield Economics Research Papers Series |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 09 May 2025 08:22 |
Last Modified: | 09 May 2025 08:23 |
Published Version: | https://www.sheffield.ac.uk/economics/research/ser... |
Status: | Published |
Publisher: | Department of Economics, University of Sheffield |
Series Name: | Sheffield Economic Research Paper Series |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:226468 |