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Competing Activities in Social Networks

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Listed:
  • Belhaj Mohamed

    () (Ecole Centrale Marseille, (Aix-Marseille School of Economics), CNRS and EHESS, Marseille, France)

  • Deroïan Frédéric

    () (Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS, Marseille, France)

Abstract

We consider a society in which each agent has one unit of a resource to allocate between two activities. Agents are organized in a social network, and each activity generates complementarities between neighbors. We find multiplicity of equilibrium for high intensity of interaction, and we characterize equilibria in terms of specialization and polarization. Overall, results reveal the crucial role played by network geometry. The results also suggest that the structure of the social network should be taken into account for the design of a public policy in favor of a specific activity.

Suggested Citation

  • Belhaj Mohamed & Deroïan Frédéric, 2014. "Competing Activities in Social Networks," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(4), pages 1-36, October.
    • Handle: RePEc:bpj:bejeap:v:14:y:2014:i:4:p:36:n:4
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    References listed on IDEAS

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    1. Belhaj, Mohamed & Bramoullé, Yann & Deroïan, Frédéric, 2014. "Network games under strategic complementarities," Games and Economic Behavior, Elsevier, vol. 88(C), pages 310-319.
    2. Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves & Lee, Lung-Fei, 2011. "Criminal Networks: Who is the Key Player?," Research Papers in Economics 2011:7, Stockholm University, Department of Economics.
    3. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    4. Francesco Drago & Roberto Galbiati, 2012. "Indirect Effects of a Policy Altering Criminal Behavior: Evidence from the Italian Prison Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 199-218, April.
    5. Bruce Sacerdote, 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 681-704.
    6. James E. Rauch, 2010. "Does Network Theory Connect to the Rest of Us? A Review of Matthew O. Jackson's Social and Economic Networks," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 980-986, December.
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    Cited by:

    1. Pritha Dev & Blessing U. Mberu & Roland Pongou, 2016. "Ethnic Inequality: Theory and Evidence from Formal Education in Nigeria," Economic Development and Cultural Change, University of Chicago Press, vol. 64(4), pages 603-660.
    2. Hsieh, Chih-Sheng & König, Michael D. & Liu, Xiaodong & Zimmermann, Christian, 2018. "Superstar Economists: Coauthorship Networks and Research Output," IZA Discussion Papers 11916, Institute of Labor Economics (IZA).
    3. Dev, Pritha & Mberu, Blessing & Pongou, Roland, 2013. "Communitarianism, Oppositional Cultures, and Human Capital Contagion: Theory and Evidence from Formal versus Koranic Education," MPRA Paper 46234, University Library of Munich, Germany, revised 15 Apr 2013.
    4. Belhaj, Mohamed & Deroïan, Frédéric, 2013. "Strategic interaction and aggregate incentives," Journal of Mathematical Economics, Elsevier, vol. 49(3), pages 183-188.
    5. Ethan Cohen‐Cole & Xiaodong Liu & Yves Zenou, 2018. "Multivariate choices and identification of social interactions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(2), pages 165-178, March.
    6. Chen, Ying-Ju & Zenou, Yves & Zhou, Junjie, 2015. "Multiple Activities for Socially-Connected Criminals," CEPR Discussion Papers 10709, C.E.P.R. Discussion Papers.
    7. Hsieh, Chih-Sheng & König, Michael & Liu, Xiaodong & Zimmermann, Christian, 2020. "Collaboration in Bipartite Networks, with an Application to Coauthorship Networks," CEPR Discussion Papers 15195, C.E.P.R. Discussion Papers.
    8. Jackson, Matthew O. & Zenou, Yves, 2015. "Games on Networks," Handbook of Game Theory with Economic Applications,, Elsevier.
    9. Jackson, Matthew O. & Zenou, Yves, 2012. "Games on Networks," CEPR Discussion Papers 9127, C.E.P.R. Discussion Papers.
    10. 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.

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