2011/08/20 by Shaun Lichter, Lichter, Shaun, Christopher Griffin +3
Decision Sciences · Physics and Astronomy · Business, Management and Accounting · #Game Theory and Applications #Opinion Dynamics and Social Influence #Business Strategy and Innovation
paper · pdf · doi:10.48550/arxiv.1108.4115
We model the formation of networks as the result of a game where by players act selfishly to get the portfolio of links they desire most. The integration of player strategies into the network formation model is appropriate for organizational networks because in these smaller networks, dynamics are not random, but the result of intentional actions carried through by players maximizing their own objectives. This model is a better framework for the analysis of influences upon a network because it integrates the strategies of the players involved. We present an Integer Program that calculates the price of anarchy of this game by finding the worst stable graph and the best coordinated graph for this game. We simulate the formation of the network and calculated the simulated price of anarchy, which we find tends to be rather low.