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We study network games under strategic complementarities. Agents are embedded in a fixed network. They choose a positive, continuous action and interact with their network neighbors. Interactions are positive and actions are bounded from above. We first derive new sufficient conditions for...
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We consider a model of interdependent efforts, with linear interaction and lower bound on effort. Our setting encompasses asymmetric interaction and heterogeneous agents’ characteristics. We examine the impact of a rise of cross-effects on aggregate efforts. We show that the sign of the...
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We examine the impact of informal risk sharing on risk taking incentives when transfers are organized through a social network. A bilateral partial sharing rule satisfies that neighbors share equally a part of their revenue. In such a society, correlated technologies generate interdependent risk...
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