@article{503bc77ff6a041e58ce3499a8ca04ada,
title = "A note on network formation with decay",
abstract = "This paper studies an endogenous network formation with decay. We introduce a strategic form game based on a simple bilateral cost allocation rule. We show that a strong Nash equilibrium of this game always exists and necessarily achieves efficient networks.",
keywords = "Decay, Efficient network, Endogenous cost allocation, Network formation, Strong Nash equilibrium",
author = "Nobuo Matsubayashi and Shigetaka Yamakawa",
note = "Funding Information: We thank Mikio Nakayama, Shinji Ohseto, Hiroo Sasaki, Tatsuyoshi Saijo and an anonymous referee for helpful comments. We also thank the participants of the 9th DC Conference at Tokyo Institute of Technology, the ISER Seminar at Osaka University, the Seminar at Keio University and atWaseda University. The first author is supported by the Grant-in-Aid for Young Scientists (B) 18710138 of the Ministry of Education, Culture, Sports, Science and Technology of Japan.",
year = "2006",
month = dec,
doi = "10.1016/j.econlet.2006.06.015",
language = "English",
volume = "93",
pages = "387--392",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier",
number = "3",
}