Coalitional Beliefs of Cournot Network Agents

TL;DR

This paper investigates how agents in network cooperative games form beliefs about the network to support cooperation, focusing on differentiated Cournot competition and stability of the network core.

Contribution

It characterizes the set of coalitional beliefs that ensure core non-emptiness and network stability in Cournot network agents.

Findings

Identifies beliefs supporting cooperation in network games

Characterizes conditions for core non-emptiness

Ensures network stability through belief structures

Abstract

In Network cooperative games, due to computational complexity issues, agents are not able to base their behavior on the "whole network status" but have to follow certain "beliefs" as to how it is in their strategic interest to act. This behavior constitutes the main interest of this paper. To this end, we quantify and characterize the set of beliefs that support cooperation of such agents. Assuming that they are engaged in a differentiated Cournot competition and that they equally split the worth produced, we characterize the set of coalitional beliefs that support core non-emptiness and thus guarantee stability of the Network.