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The Key Class in Networks

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  • Allouch, Nizar
  • Bhattacharya, Jayeeta

Abstract

This paper examines optimal targeting of multiple network players from a new perspective, focusing on classes of players holding similar network positions – and thus fulfilling similar network roles – as captured by the graph theoretic notion of equitable partition. Unlike existing centrality measures, we show that analysing the network game with local payoff complementarities under symmetry brings out new insights about the relative influence of classes of similarly positioned network players on the Nash equilibrium activity. Our analysis introduces two novel class-based centrality measures with broad theoretical and empirical applicability that geometrically characterise the key class whose removal results in the maximal reduction of aggregate and per-capita network activity, respectively.

Suggested Citation

  • Allouch, Nizar & Bhattacharya, Jayeeta, 2025. "The Key Class in Networks," European Economic Review, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:eecrev:v:172:y:2025:i:c:s0014292125000017
    DOI: 10.1016/j.euroecorev.2025.104950
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    References listed on IDEAS

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    1. Allouch, Nizar, 2017. "The cost of segregation in (social) networks," Games and Economic Behavior, Elsevier, vol. 106(C), pages 329-342.
    2. Belhaj, Mohamed & Bervoets, Sebastian & Deroïan, Frédéric, 2016. "Efficient networks in games with local complementarities," Theoretical Economics, Econometric Society, vol. 11(1), January.
    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, September.
    4. Antoni Calvó-Armengol & Eleonora Patacchini & Yves Zenou, 2009. "Peer Effects and Social Networks in Education," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(4), pages 1239-1267.
    5. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    6. , D. & Tessone, Claudio J. & ,, 2014. "Nestedness in networks: A theoretical model and some applications," Theoretical Economics, Econometric Society, vol. 9(3), September.
    7. 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.
    8. Benjamin Golub & Matthew O. Jackson, 2012. "How Homophily Affects the Speed of Learning and Best-Response Dynamics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1287-1338.
    9. Stephen P. Borgatti, 2006. "Identifying sets of key players in a social network," Computational and Mathematical Organization Theory, Springer, vol. 12(1), pages 21-34, April.
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    More about this item

    Keywords

    Social and economic networks; Network games; Equitable partition; Centrality measures; Network symmetry;
    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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