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Network Games under Strategic Complementarities

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  • Mohamed Belhaj

    () (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM))

  • Yann Bramoullé

    (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM), Department of Economics, Université Laval - Université Laval)

  • Frédéric Deroïan

    () (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM))

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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Bibliographic Info

Paper provided by HAL in its series Working Papers with number halshs-00793439.

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Date of creation: Oct 2012
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Handle: RePEc:hal:wpaper:halshs-00793439

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00793439
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Related research

Keywords: Network Games; Strategic Complementarities; Supermodular Games; Bonacich Centrality;

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  1. Mohamed Belhaj & Frédéric Deroïan, 2008. "Endogenous efforts on communication networks under strategic complementarity," Working Papers halshs-00339159, HAL.
  2. Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2007. "Identification of Peer Effects through Social Networks," Cahiers de recherche 0705, CIRPEE.
  3. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2006. "Who's Who in Networks. Wanted: The Key Player," Econometrica, Econometric Society, vol. 74(5), pages 1403-1417, 09.
  4. Ballester, Coralio & Calvó-Armengol, Antoni, 2010. "Interactions with hidden complementarities," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 397-406, November.
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