Network Formation Game

Build strategic networks and compare private incentives, pairwise stability, and social welfare.

Network Formation Game

Links0
Social welfare0
Pairwise stable?
Diameter

Player utilities

How this teaches game theory

Complete scenario, mode, and level guide

Network formation games make the network itself strategic: players create or remove links when the private benefit exceeds the private cost.

Social Network

Links provide direct and indirect social benefits, but maintaining relationships has a cost.

Computer Network

Connections reduce communication distance but consume infrastructure resources.

Trade Network

Trade links create access to partners while imposing transaction or maintenance costs.

Modes

Human Builds Network

Add or remove links manually and compare private utilities with social welfare.

Human + Stability Advisor

The app reports whether some pair wants to add a link or some endpoint wants to remove one.

Computer Formation

Repeated best-response moves create a locally stable network.

Levels

Level 1 — 4 Nodes

A small network where stars, paths, and complete graphs are easy to compare.

Level 2 — 5 Nodes

More possible links create richer strategic structure.

Level 3 — High Link Cost

Expensive edges encourage sparse networks and sharpen the tension between connectivity and cost.

Pairwise stability: no existing link should be worth deleting for either endpoint, and no absent link should benefit both endpoints enough that they would jointly add it.