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Games on Multi-Layer Networks

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  • Walsh, A. M.

Abstract

A set of agents is connected by two distinct networks, with each network describing access to a different local public good. Agents choose which networks to invest in, and neighbouring agents' investments in the same good are strategic substitutes, as are an agent's two investment choices. There are always equilibria where any investing agent bears all local investment costs and others free-ride. When investment in one good reduces marginal benefit from investment in the other, agents free-riding in one good may invest more profitably in the other, and equilibrium payoffs are more evenly distributed. This need not reduce aggregate payoff.

Suggested Citation

  • Walsh, A. M., 2019. "Games on Multi-Layer Networks," Cambridge Working Papers in Economics 1954, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:1954
    Note: amw202
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    File URL: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1954.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Multi-layer networks; network games; public goods;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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