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Multiple Activities in Networks

Author

Listed:
  • Ying-Ju Chen
  • Yves Zenou
  • Junjie Zhou

Abstract

We consider a network model where individuals exert efforts in two types of activities that are interdependent. These activities can be either substitutes or complements. We provide a full characterization of the Nash equilibrium of this game for any network structure. We show, in particular, that quadratic games with linear best-reply functions aggregate nicely to multiple activities because equilibrium efforts obey similar formulas to that of the one-activity case. We then derive some comparative statics results showing how own productivity affects equilibrium efforts and how network density impacts equilibrium outcomes.

Suggested Citation

  • Ying-Ju Chen & Yves Zenou & Junjie Zhou, 2018. "Multiple Activities in Networks," American Economic Journal: Microeconomics, American Economic Association, vol. 10(3), pages 34-85, August.
    • Handle: RePEc:aea:aejmic:v:10:y:2018:i:3:p:34-85
    Note: DOI: 10.1257/mic.20160253
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    Citations

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    Cited by:

    1. Chen, Ying-Ju & Zenou, Yves & Zhou, Junjie, 2022. "The impact of network topology and market structure on pricing," Journal of Economic Theory, Elsevier, vol. 204(C).
    2. Herzing, Tobias J. & Muck, Matthias, 2024. "Can you keep a secret? The dissemination of false rumors and the evolution of bubbles in perceived predatory trading games," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    3. Kobayashi, Teruyoshi & Ogisu, Yoshitaka & Onaga, Tomokatsu, 2023. "Unstable diffusion in social networks," Journal of Economic Dynamics and Control, Elsevier, vol. 146(C).
    4. Fu, Wentao & Sun, Yang, 2021. "Rumor investigation in networks," Economic Modelling, Elsevier, vol. 98(C), pages 168-178.
    5. Fu, Wentao & Hua, Di & Qian, Xuewen & Sun, Yang, 2022. "Constrained public goods in weighted networks with heterogeneous agents," Economics Letters, Elsevier, vol. 213(C).
    6. Mauleon, Ana & Nanumyan, Mariam & Vannetelbosch, Vincent, 2024. "Ideal efforts and consensus in a multi-layer network game," LIDAM Discussion Papers CORE 2024023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Evan Sadler & Benjamin Golub, 2021. "Games on Endogenous Networks," Papers 2102.01587, arXiv.org, revised Feb 2024.
    8. Parise, Francesca & Ozdaglar, Asuman, 2019. "A variational inequality framework for network games: Existence, uniqueness, convergence and sensitivity analysis," Games and Economic Behavior, Elsevier, vol. 114(C), pages 47-82.
    9. Billand, Pascal & Bravard, Christophe & Joshi, Sumit & Mahmud, Ahmed Saber & Sarangi, Sudipta, 2023. "A model of the formation of multilayer networks," Journal of Economic Theory, Elsevier, vol. 213(C).
    10. Allouch, Nizar & King, Maia, 2021. "Welfare targeting in networks," Journal of Mathematical Economics, Elsevier, vol. 96(C).
    11. Teruyoshi Kobayashi & Tomokatsu Onaga, 2023. "Dynamics of diffusion on monoplex and multiplex networks: a message-passing approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(1), pages 251-287, July.
    12. Hanbat Jeong, 2024. "Dynamic spatial interaction models for a leader's resource allocation and followers' multiple activities," Papers 2411.13810, arXiv.org.
    13. Jiao, Qian & Xu, Jin, 2020. "Competition for networked agents in the lottery Blotto game," Economics Letters, Elsevier, vol. 197(C).
    14. Lindquist, Matthew J. & Zenou, Yves, 2019. "Crime and Networks: 10 Policy Lessons," IZA Discussion Papers 12534, Institute of Labor Economics (IZA).
    15. Patrick Allmis & Luca Paolo Merlino, 2023. "Homophily and Specialization in Networks," Papers 2312.00457, arXiv.org.
    16. Joshi, Sumit & Mahmud, Ahmed Saber & Sarangi, Sudipta, 2020. "Network formation with multigraphs and strategic complementarities," Journal of Economic Theory, Elsevier, vol. 188(C).
    17. Ryan Kor & Junjie Zhou, 2021. "Multi-activity Influence and Intervention," Papers 2106.09410, arXiv.org, revised Nov 2022.
    18. Chan, Lester T., 0. "Weight-ranked divide-and-conquer contracts," Theoretical Economics, Econometric Society.
    19. Ryo Itoh & Zonghui Li, 2021. "Effects of dual networks on tax strategies: geography and transaction," The Japanese Economic Review, Springer, vol. 72(1), pages 97-128, January.
    20. Kor, Ryan & Zhou, Junjie, 2023. "Multi-activity influence and intervention," Games and Economic Behavior, Elsevier, vol. 137(C), pages 91-115.
    21. Walsh, A. M., 2019. "Games on Multi-Layer Networks," Cambridge Working Papers in Economics 1954, Faculty of Economics, University of Cambridge.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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