Implementation of Optimal Connection Networks
Research output: Working paper › Research
Documents
- Implementation of Optimal Connection Networks
Final published version, 1.23 MB, PDF document
We consider a connection networks model. Every agent has a demand in the form of pairs of locations she wants connected, and a willingness to pay for connectivity. A planner aims at implementing a welfare maximizing network and allocating the resulting cost, but information is asymmetric: agents are fully informed, the planner is ignorant. The options for full implementation in Nash and strong Nash equilibria are studied. We simplify strategy sets without changing the set of Nash implementable correspondences. We show the correspondence of consisting of welfare maximizing networks and individually rational cost allocations is implementable. We construct a minimal Nash implementable desirable solution in the set of upper hemi-continuous and Nash implementable solutions. It is not possible to implement solutions such a the Shapley value unless we settle for partial implementation.
Original language | English |
---|---|
Publisher | Department of Food and Resource Economics, University of Copenhagen |
Number of pages | 20 |
Publication status | Published - 2020 |
Series | IFRO Working Paper |
---|---|
Number | 2020/06 |
Number of downloads are based on statistics from Google Scholar and www.ku.dk
No data available
ID: 244278337