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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: https://www.econ.cam.ac.uk/sites/default/files/publication-cwpe-pdfs/cwpe1954.pdf
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    References listed on IDEAS

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    Cited by:

    1. Paolo Bova & Alessandro Di Stefano & The Anh Han, 2023. "Both eyes open: Vigilant Incentives help Regulatory Markets improve AI Safety," Papers 2303.03174, arXiv.org.
    2. Kor, Ryan & Zhou, Junjie, 2023. "Multi-activity influence and intervention," Games and Economic Behavior, Elsevier, vol. 137(C), pages 91-115.
    3. Billand, Pascal & Bravard, Christophe & Joshi, Sumit & Mahmud, Ahmed Saber & Sarangi, Sudipta, 2023. "A model of the formation of multilayer networks," Journal of Economic Theory, Elsevier, vol. 213(C).
    4. Patrick Allmis & Luca Paolo Merlino, 2023. "Homophily and Specialization in Networks," Papers 2312.00457, arXiv.org.
    5. Ryan Kor & Junjie Zhou, 2021. "Multi-activity Influence and Intervention," Papers 2106.09410, arXiv.org, revised Nov 2022.

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    Keywords

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    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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