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.

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Year of publication:	2011
Authors:	Billand, Pascal ; Bravard, Christophe ; Sarangi, Sudipta
Institutions:	Groupe d'Analyse et de Théorie Économique Lyon St-Étienne (GATE Lyon St-Étienne), Faculté de Sciences Économiques et de Gestion
Subject:	networks \| existence \| spillovers

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 1110
Classification:	C70 - Game Theory and Bargaining Theory. General ; D85 - Network Formation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008862315