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This paper introduces a simulation algorithm for evaluating the log-likelihood function of a large supermodular binary-action game. Covered examples include (certain types of) peer effect, technology adoption, strategic network formation, and multi-market entry games. More generally, the...
Persistent link: https://www.econbiz.de/10014480510
Consider a setting where N players, partitioned into K observable types, form a directed network. Agents' preferences over the form of the network consist of an arbitrary network benefit function (e.g., agents may have preferences over their network centrality) and a private component which is...
Persistent link: https://www.econbiz.de/10013253012
We introduce a test for whether agents' preferences over network structure are interdependent. Interdependent preferences induce strategic behavior since the optimal set of links directed by agent i will vary with the configuration of links directed by other agents. Our model also incorporates...
Persistent link: https://www.econbiz.de/10012621119