Optimal Equilibria of the Best Shot Game
AbstractWe consider any network environment in which the “best shot game” is played. This is the case where the possible actions are only two for every node (0 and 1), and the best response for a node is 1 if and only if all her neighbors play 0. A natural application of the model is one in which the action 1 is the purchase of a good, which is locally a public good, in the sense that it will be available also to neighbors. This game will typically exhibit a great multiplicity of equilibria. Imagine a social planner whose scope is to find an optimal equilibrium, i.e. one in which the number of nodes playing 1 is minimal. To find such an equilibrium is a very hard task for any non-trivial network architecture. We propose an implementable mechanism that, in the limit of infinite time, reaches an optimal equilibrium, even if this equilibrium and even the network structure is unknown to the social planner.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.33.
Date of creation: May 2009
Date of revision:
Networks; Best Shot Game; Simulated Annealing;
Other versions of this item:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matthew Haag & Roger Lagunoff, 2006.
"Social Norms, Local Interaction, And Neighborhood Planning ,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(1), pages 265-296, 02.
- Matthew Haag & Roger Lagunoff, 2000. "social Norms, Local Interaction and Neighborhood Planning," Levine's Working Paper Archive 2049, David K. Levine.
- Matthew Haag & Roger Lagunoff, 1999. "Social Norms, Local Interaction, and Neighborhood Planning," Game Theory and Information 9907004, EconWPA.
- Dunia Lopez Pintado, 2007.
"The Spread of Free-Riding Behavior in a Social Network,"
UFAE and IAE Working Papers
718.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Dunia L�pez-Pintado, 2008. "The Spread of Free-Riding Behavior in a Social Network," Eastern Economic Journal, Palgrave Macmillan, vol. 34(4), pages 464-479.
- Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
- Andrea Galeotti & Sanjeev Goyal, 2007.
"The Law of the Few,"
Economics Discussion Papers
636, University of Essex, Department of Economics.
- Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2010.
Review of Economic Studies,
Oxford University Press, vol. 77(1), pages 218-244.
- Boncinelli, Leonardo & Pin, Paolo, 2012. "Stochastic stability in best shot network games," Games and Economic Behavior, Elsevier, vol. 75(2), pages 538-554.
- Subhasish M. Chowdhury & Dongryul Lee & Roman M. Sheremeta, 2011.
"Top Guns May Not Fire: Best-Shot Group Contests with Group-Specific Public Good Prizes,"
University of East Anglia Applied and Financial Economics Working Paper Series
024, School of Economics, University of East Anglia, Norwich, UK..
- Chowdhury, Subhasish M. & Lee, Dongryul & Sheremeta, Roman M., 2013. "Top guns may not fire: Best-shot group contests with group-specific public good prizes," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 94-103.
- Chowdhury, Subhasish & Lee, Dongryul & Sheremeta, Roman, 2013. "Top Guns May Not Fire: Best-Shot Group Contests with Group-Specific Public Good Prizes," MPRA Paper 46654, University Library of Munich, Germany.
- Subhasish M. Chowdhury & Dongryul Lee & Roman M. Sheremeta, 2013. "Top Guns May Not Fire: Best-Shot Group Contests with Group-Specific Public Good Prizes," Working Papers 13-12, Chapman University, Economic Science Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
If references are entirely missing, you can add them using this form.