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Games Played on Networks

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  • Yann Bramoullé

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Rachel Kranton

    (Duke University [Durham])

Abstract

This chapter studies games played on fixed networks. These games capture a wide variety of economic settings including local public goods, peer effects, and technology adoption. We establish a common analytical framework to study a wide game class. We unearth new connections between games in the literature and in particular between those with binary actions, like coordination and best-shot games, and those with continuous actions and linear best replies. We review and advance existing results by showing how they tie together within the common framework. We discuss the game-theoretic underpinnings of key notions including Bonacich centrality, maximal independent sets, and the lowest and largest eigenvalue. We study the interplay of individual heterogeneity and the network and we develop a new notion - interdependence - to analyze how a shock to one agent affects the action of another agent. We outline directions for future research.

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  • Yann Bramoullé & Rachel Kranton, 2015. "Games Played on Networks," Working Papers halshs-01180657, HAL.
    • Handle: RePEc:hal:wpaper:halshs-01180657
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01180657
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    References listed on IDEAS

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    Keywords

    network games; fixed networks; peer effects; coordination; interdependence;
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