Analysis And Application Of Binary Stable Network Algorithm Under JW Rules

In the field of network formation games, the study of social and economic network has became a hot. And some economic phenomena have been confirmed successfully by those results. In those researches, Nash Equilibrium is the main topic. But pairwise stability is also a very important concept. It is the main tool to study the network formation game in JW rules.In this paper, the character, algorithm and application about pairwise stability are researched. Since models and algorithm are rare, a pairwise stable model which can meet two kinds of payment functions is displayed. From the changes of all players’ payments,determining proposition of pairwise stable network is presented in this paper. Soon afterwards, a algorithm combined with matrix is gained. In the final, the application of pairwise stability between war and trade is studied, and that trade can makes peace is proved.