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Network structure, games, and agent dynamics

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  • Wilhite, Allen

Abstract

Consider a group of agents embedded in a network, repeatedly playing a game with their neighbors. Each agent acts locally but through the links of the network local decisions percolate to the entire population. Past research shows that such a system converges either to an absorbing state (a fixed distribution of actions that once attained does not change) or to an absorbing set (a set of action distributions that may cycle in finite populations or behave chaotically in unbounded populations). In many network games, however, it is uncertain which situation emerges. In this paper I identify two fundamental network characteristics, boundary consistency and neighborhood overlap, that determine the outcome of all symmetric, binary-choice, network games. In quasi-consistent networks these games converge to an absorbing state regardless of the initial distribution of actions, and the degree to which neighborhoods overlap impacts the number and composition of those absorbing states.

Suggested Citation

  • Wilhite, Allen, 2014. "Network structure, games, and agent dynamics," Journal of Economic Dynamics and Control, Elsevier, vol. 47(C), pages 225-238.
  • Handle: RePEc:eee:dyncon:v:47:y:2014:i:c:p:225-238
    DOI: 10.1016/j.jedc.2014.08.008
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    Cited by:

    1. Jinhua Zhao & Xianjia Wang & Cuiling Gu & Ying Qin, 2021. "Structural Heterogeneity and Evolutionary Dynamics on Complex Networks," Dynamic Games and Applications, Springer, vol. 11(3), pages 612-629, September.
    2. Mitja Steinbacher & Matthias Raddant & Fariba Karimi & Eva Camacho Cuena & Simone Alfarano & Giulia Iori & Thomas Lux, 2021. "Advances in the agent-based modeling of economic and social behavior," SN Business & Economics, Springer, vol. 1(7), pages 1-24, July.
    3. Annie TUBADJI & Vassilis ANGELIS & Peter NIJKAMP, 2019. "Micro-Cultural Preferences and Macro-Percolation of New Ideas: A NetLogo Simulation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 168-185, March.

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    More about this item

    Keywords

    Games; Networks; Local interaction; Network structure; Agent dynamics;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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