We examine a variety of stability and equilibrium definitions that have been used to study the formation of social networks among a group of players. In particular we compare variations on three types of definitions: those based on a pairwise stability notion, those based on the Nash equilibria of a link formation game, and those based on equilibria of a link formation game where transfers are possible.
Keywords Networks - Network games - Game theory - Equilibrium - Side payments - Transfers - Bargaining
JEL Classification Numbers D85 - C71 - C72 - L14 - Z13
Bloch is also affiliated with the University of Warwick.