关键词: 网络博弈论, 两两稳定性, 福利改善路径, 国家福利不对称性

Abstract: As an extension of Goyal and Joshi, this paper provides a model of bilateral free trade agreement(FTA)network formation where FTA implies unrestricted FDI(foreign direct investment)and the revenue from non-FTA partner countries via FDI is distributed between home country and host country according to a certain proportion. The main results show that the evolution of FTA networks can be divided into two stages. In the first stage, there exists a path from empty FTA network to star FTA network where both individual country social welfare and world social welfare are improving and an asymmetry between individual countries in social welfare exists. In the second stage, there exists an individual country social welfare improving path from star FTA network to complete FTA network while the world social welfare remains the same, in which an asymmetry between individual countries in social welfare comes to be eliminated.

Key words: network game theory, pairwise stability, social welfare improving path, asymmetry between individual countries in social welfare