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Network Games under Strategic Complementarities

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Abstract

We study network games with linear best-replies and strategic complementarities. We assume that actions are continuous but bounded from above. We show that there is always a unique equilibrium. We find that two key features of these games under small network effects may not hold when network effects are large. Action may not be aligned with network centrality and the interdependence between agents' actions may be broken.

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  • Mohamed Belhaj & Yann Bramoullé & Frédéric Deroian, 2012. "Network Games under Strategic Complementarities," AMSE Working Papers 1225, Aix-Marseille School of Economics, France.
    • Handle: RePEc:aim:wpaimx:1225
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    More about this item

    Keywords

    Network Games; Strategic Complementarities; Supermodular Games; Bonacich Centrality.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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