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Competition for the access to and use of information in networks

Author

Listed:
  • Philipp Moehlmeier

    (Universität Bielefeld = Bielefeld University)

  • Agnieszka Rusinowska

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Emily Tanimura

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

In a network formation framework, where payoffs reflect an agent's ability to access information from direct and indirect contacts, we integrate negative externalities due to connectivity associated with two types of effects: competition for the access to information, and rivalrous use of information. We consider two separate models to capture the first and the second situations, respectively. In the first model we assume that information is a non-rivalrous good but that there is competition for the access to information, for example because an agent with many contacts must share his time between them and thus has fewer opportunities to pass on information to each particular contact. In the second model we do not assume that there is competition for the access to information, but rather that the use of information is rivalrous. In this case, it is assumed that when people are closer to the sender than an agent, the harmful effect is greater than when others are at the same distance to the sender as that agent. In both models we analyze pairwise stability and examine if the stability of a structure is preserved when the number of agents becomes very large. This leads to a new concept that we call asymptotic pairwise stability. We show that there can exist a tension between asymptotic pairwise stability and efficiency. The results allow us to compare and contrast the effects of two kinds of competition for information.

Suggested Citation

  • Philipp Moehlmeier & Agnieszka Rusinowska & Emily Tanimura, 2018. "Competition for the access to and use of information in networks," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02196025, HAL.
    • Handle: RePEc:hal:cesptp:hal-02196025
    DOI: 10.1016/j.mathsocsci.2017.09.006
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    Cited by:

    1. Currarini, Sergio & Fumagalli, Elena & Panebianco, Fabrizio, 2017. "Peer effects and local congestion in networks," Games and Economic Behavior, Elsevier, vol. 105(C), pages 40-58.
    2. Ping Sun & Elena Parilina, 2021. "Network Formation with Asymmetric Players and Chance Moves," Mathematics, MDPI, vol. 9(8), pages 1-16, April.
    3. Ping Sun & Elena Parilina, 2024. "Networks with nonordered partitioning of players: stability and efficiency with neighborhood-influenced cost topology," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 99(3), pages 271-305, June.

    More about this item

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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