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• W2899007946 abstract "We consider a model of social coordination and network formation where agents decide on an action in a coordination game and on whom to establish costly links to. We study the role of passive connections; these are links that other agents form to a given agent. Such passive connections may create an endogenously arising form of lock-in where agents don't switch actions and links, as this may result in a loss of payoff received through them. When agents are constrained in the number of links they form, the set of Nash equilibria includes action-heterogenous strategy profiles, where different agents choose different actions. Depending on the precise parameters of the model, risk-dominant, payoff-dominant, or action-heterogenous strategy profiles are stochastically stable." @default.
• W2899007946 created "2018-11-09" @default.
• W2899007946 creator A5049208903 @default.
• W2899007946 creator A5063260240 @default.
• W2899007946 date "2021-03-01" @default.
• W2899007946 modified "2023-10-06" @default.
• W2899007946 title "Lock-in through passive connections" @default.
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• W2899007946 doi "https://doi.org/10.1016/j.jet.2021.105187" @default.
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