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We model the formation of networks as the result of a game where by playersact selfishly to get the portfolio of links they desire most. The integrationof player strategies into the network formation model is appropriate fororganizational networks because in these smaller networks, dynamics are notrandom, but the result of intentional actions carried through by playersmaximizing their own objectives. This model is a better framework for theanalysis of influences upon a network because it integrates the strategies ofthe players involved. We present an Integer Program that calculates the priceof anarchy of this game by finding the worst stable graph and the bestcoordinated graph for this game. We simulate the formation of the network andcalculated the simulated price of anarchy, which we find tends to be ratherlow.

The Calculation and Simulation of the Price of Anarchy for Network Formation Games