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Examines cooperative behavior in differential network games, suggesting stability with construction costs.
The paper studies differential network games with the possibility of constructing new arcs (links) at a cost. Bellman-type dynamic approach is used to maximize the total payoff over the whole time horizon under limited network adjustments. It is shown that, when a suitable construction cost is imposed on each newly added arc, the initial cooperative network remains stable. A four-player oligopoly example illustrates the result.
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Petrosyan et al. (2026) studied this question.
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