A network in a society composed of individuals characterized by the ultimatum bargaining games

In some published papers of the network formation, it is assumed that each player pays the same amount of cost for forming or maintaining a link, or a player who offers to form new link pays all of the link cost. In this paper, however, we construct two types of network formation models with general allocation procedures of the link cost, and examine stability of the network. In the first model, a pair of players share the cost unequally with a fixed fraction, and in the second model, the players divide the link cost in accordance with the procedure of the ultimatum bargaining games.