Local Spillovers, Convexity and the Strategic Substitutes Property in Networks
We provide existence results in a game with local spillovers where the payoff function satisfies both convexity and the strategic substitutes property. We show that there always exists a stable pairwise network in this game, and provide a condition which ensures the existence of pairwise equilibrium networks. Moreover, our existence proof allows us to characterize a pairwise equilibrium of these networks.
|Date of creation:||2011|
|Date of revision:|
|Publication status:||Published in Working paper GATE 2011-10. 2011|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00574265|
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