Network Formation in the Presence of Contagious Risk

ACM Trans. Economics and Comput., , ArticleNo.6, 2013.

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Keywords:
Contagious Riskelectrical power networkfundamental sensecontagious riskavailable welfareMore(7+)

Abstract:

There are a number of domains where agents must collectively form a network in the face of the following trade-off: each agent receives benefits from the direct links it forms to others, but these links expose it to the risk of being hit by a cascading failure that might spread over multistep paths. Financial contagion, epidemic disease, ...More

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