Dynamics in tree formation games

► We consider network formation game with prohibitive cost of redundant links. ► The Price of Anarchy (PoA) in the static game is shown to be unbounded. ► The PoA of a network selected by best-response (BR) dynamics is also unbounded. ► We introduce a local two-stage BR dynamics that select networks with bounded PoA. ► Convergence rate of these dynamics is polynomial for two subfamilies of models.