Delta and cost influence the structure of a pairwise stable network:
for a low cost 𝙘 < 𝛅-𝛅^2, complete network is pairwise stable
for a medium/low cost 𝛅-𝛅^2< 𝙘 < 𝛅, star network is pairwise stable (but other networks can be pairwise stable too)
for a medium/high cost 𝛅 < 𝙘 < 𝛅 + (n-2)𝛅^2/2, the cost does not justify bringing only one person in the network with the link so forming links tends to bring in more people to get indirect benefits to compensate cost. Additionally, every agent forms a link only with agents bringing other connection with them. This is actually the case where a star network is efficient but not pairwise stable.
𝛅 + (n-2)𝛅^2/2< 𝙘, the empty network is pairwise stable
Change parameters or reload the page to generate another network.
Delta and cost influence the structure of a pairwise stable network:
Change parameters or reload the page to generate another network.