Seeking Relationship Support: Strategic network formation and robust cooperation by David A. Miller

Join us for the another event in the Microeconomics Research Seminar Series, Spring Term 2022

David A. Miller, from the Department of Economics at the University of Michigan, will present Seeking Relationship Support: Strategic network formation and robust cooperation.

Abstract

We study cooperation on evolving social networks with private monitoring and communication. For arbitrary networks, we construct a class of multilateral restitution equilibria that attain high cooperation on all supported links, i.e., all links that are in triangles. These equilibria are both robust - preserving high cooperation between innocent players on and off the equilibrium path - and local - invariant to players’ beliefs about the network outside their local neighborhoods. Guilty players are not ostracized; instead they remain involved to sustain cooperation on the network while paying restitution by exerting high effort for their innocent partners. When new players arrive, they strategically form links that in aggregate lead to realistic “small worlds” network properties, including high support but relatively low clustering 

This seminar will be held at 4pm on Zoom. This event is open to all levels of study and is also open to the public. To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Microeconomics Research Seminar Series.