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Network Heterogeneity and a Coordination Game

Author

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  • Tomohiko Tomohiko

    (Institute of Advanced Study, Waseda Univeristy)

Abstract

We investigate a two-strategy logit choice coordination game on heterogeneous networks. Degree is a number of links a vertex has and heterogeneous network is a network whose variance of degree distribution is large. We obtain mean-field approximate solution. We show that the heterogeneity of a network has an influence on the outcome. The magnitude of heterogeneity determines the number of stable steady states and the characteristics of the stable steady states. The network heterogeneity also determines which of the stable steady states is realized and the probability that a strategy is chosen in a given stable steady state.

Suggested Citation

  • Tomohiko Tomohiko, 2015. "Network Heterogeneity and a Coordination Game," Economics Bulletin, AccessEcon, vol. 35(4), pages 2462-2474.
    • Handle: RePEc:ebl:ecbull:eb-15-00638
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I4-P247.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Networks; Local Social Interactions; Network Heterogeneity; Scale-free Networks; Coordination Games; Peer Effect; Games on Networks; Logit Choice; Percolations;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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