# Topologies and Price of Stability of Complex Strategic Networks with Localized Payoffs : Analytical and Simulation Studies

@article{Vallam2012TopologiesAP, title={Topologies and Price of Stability of Complex Strategic Networks with Localized Payoffs : Analytical and Simulation Studies}, author={Rohith Dwarakanath Vallam and C. A. Subramanian and Ramasuri Narayanam and Y. Narahari and Srinath Narasimha}, journal={ArXiv}, year={2012}, volume={abs/1201.0067} }

We analyze a network formation game in a strategic setting where payoffs of individuals depend only on their immediate neighbourhood. We call these payoffs as localized payoffs. In this game, the payoff of each individual captures (1) the gain from immediate neighbors, (2) the bridging benefits, and (3) the cost to form links. This implies that the payoff of each individual can be computed using only its single-hop neighbourhood information. Based on this simple model of network formation, our…

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