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date: 01 December 2020

Abstract and Keywords

The chapter reviews the recent network literature where both the actions agents choose and the partners with whom they interact are jointly determined. Such an interplay between actions and links can result either from the equilibrium of a corresponding game or as the selection induced by a co-evolutionary adjustment process. The chapter explains how this phenomenon is important in understanding issues of coordination, cooperation, and intermediation. At a more concrete level, it also illustrates its relevance for problems of bargaining, local public goods, learning, and conflict. The general theme running through the analysis of all these different contexts is that an approach that ignores the interplay (and thus co-determination) of links and actions can generate quite misleading conclusions on the phenomena at hand.

Keywords: network coevolution, network formation, coordination, cooperation, intermediation, bargaining, public goods, learning, conflict

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