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Breaking Status-Quo Inertia in Living Temporal Games: Dynamic Intervention, Implementation, and Structural Design

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  • Madjid Eshaghi Gordji
  • Ali Jabbari
  • Mohammad Ali Berahman
  • Esmaiel Abounoori

Abstract

Westudy how a planner can design dynamic interventions to overcome status-quo inertia in living temporal games, where strategic agents control their state (active, sleep, partially dead) on a temporal network. Building on the continuous-time stochastic game framework of our companion paper, we introduce three intervention classes: bounded transfers (price based), structural modifications (edge deletion, addition, or replacement), and information signals. We formalize the notion of inertia depth and prove a threshold theorem: the status quo equilibrium survives all transfer perturbations whose magnitude is below a critical bound that depends on the remaining horizon. A central structural dominance result shows that for any finite transfer budget there exists a family of games where no bounded price intervention can eliminate the inefficient equilibrium, yet a single edge replacement (continuous-flow to discrete-transport) succeeds. We then study private-information subclasses with static types. Using a uniformization reduction, we prove an impossibility result: no direct mechanism can simultaneously satisfy ex post incentive compatibility, ex post budget balance, and history privacy while always implementing an efficient equilibrium. In the same subclass we construct a dynamic pivot mechanism that achieves second-best efficiency with bounded deficit. Finally, we show that replacing continuous-flow edges by discrete-transport edges weakly expands the set of implementable outcomes, highlighting the importance of temporal semantics for mechanism design. Our results extend the static analysis of [5] to continuous time strategic networks and provide a rigorous foundation for subsequent papers on learning and mean-field design.

Suggested Citation

  • Madjid Eshaghi Gordji & Ali Jabbari & Mohammad Ali Berahman & Esmaiel Abounoori, 2026. "Breaking Status-Quo Inertia in Living Temporal Games: Dynamic Intervention, Implementation, and Structural Design," Papers 2605.19087, arXiv.org.
  • Handle: RePEc:arx:papers:2605.19087
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    References listed on IDEAS

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    1. Myerson, Roger B. & Satterthwaite, Mark A., 1983. "Efficient mechanisms for bilateral trading," Journal of Economic Theory, Elsevier, vol. 29(2), pages 265-281, April.
    2. Dirk Bergemann & Juuso V‰lim‰ki, 2010. "The Dynamic Pivot Mechanism," Econometrica, Econometric Society, vol. 78(2), pages 771-789, March.
    3. Madjid Eshaghi Gordji & Esmaiel Abounoori & Mohamadali Berahman, 2026. "Changing the Game: Status-Quo Inertia, Institutional Design, and Equilibrium Transition," Papers 2605.09083, arXiv.org, revised Jun 2026.
    4. Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 23-38.
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