We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical monotonicity. The n-player group version always yields efficiency.
"Networks with Group Counterproposals"
(September 15, 2008).
Fondazione Eni Enrico Mattei Working Papers.
Working Paper 220.