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Network games under strategic complementarities

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  • Mohamed Moez Belhaj

    (IEMN - Institut d’Électronique, de Microélectronique et de Nanotechnologie - UMR 8520 - Centrale Lille - Institut supérieur de l'électronique et du numérique (ISEN) - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - Université de Lille - CNRS - Centre National de la Recherche Scientifique - UPHF - Université Polytechnique Hauts-de-France, GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Yann Bramoullé

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Frédéric Deroïan

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study network games under strategic complementarities. Agents are embedded in a fixed network. They choose a positive, continuous action and interact with their network neighbors. Interactions are positive and actions are bounded from above. We first derive new sufficient conditions for uniqueness, covering all concave as well as some non-concave best responses. We then study the relationship between position and action and identify situations where a more central agent always plays a higher action in equilibrium. We finally analyze comparative statics. We show that a shock may not propagate throughout the entire network and uncover a general pattern of decreasing interdependence.

Suggested Citation

  • Mohamed Moez Belhaj & Yann Bramoullé & Frédéric Deroïan, 2014. "Network games under strategic complementarities," Post-Print hal-01474250, HAL.
    • Handle: RePEc:hal:journl:hal-01474250
    DOI: 10.1016/j.geb.2014.10.009
    Note: View the original document on HAL open archive server: https://amu.hal.science/hal-01474250
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    More about this item

    Keywords

    Centrality; Interdependence; Network games; Strategic complementarities; Uniqueness;
    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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