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A local public-good game played on directed networks is analyzed. The model is motivated by one-way flows of hydrological influence between cities of a river basin that may shape the level of their contribution to the conservation of wetlands. It is shown that in many (but not all) directed...
Persistent link: https://www.econbiz.de/10008828401
We study a model where agents, located in a social network, decide whether to exert effort or not in experimenting with a new technology (or acquiring a new skill, innovating, etc.). We assume that agents have strong incentives to free ride on their neighbors' effort decisions. In the static...
Persistent link: https://www.econbiz.de/10005168436
In this paper, we show that a concept of aggregation can hold in large network games with linear best replies. Breaking up large networks into smaller subnetworks, which can be replaced by representative players, leads to a coarse-grained description of strategic interactions. This method of...
Persistent link: https://www.econbiz.de/10013396062
The best shot game applied to networks is a discrete model of many processes of contribution to local public goods. It has generally a wide multiplicity of equilibria that we refine through stochastic stability. In this paper we show that, depending on how we define perturbations, i.e. the...
Persistent link: https://www.econbiz.de/10010272469
We analyze a team formation process that generalizes matching models and network formation models, allowing for overlapping teams of heterogeneous size. We apply different notions of stability: myopic team-wise stability, which extends to our setup the concept of pair-wise stability, coalitional...
Persistent link: https://www.econbiz.de/10015242777
We model a bipartite network in which links connect agents with public goods. Agents play a voluntary contribution game in which they decide how much to contribute to each public good they are connected to. We show that the problem of finding a Nash equilibrium can be posed as a non-linear...
Persistent link: https://www.econbiz.de/10011307295
In this paper, we show that a concept of aggregation can hold in network games. Breaking up large networks into smaller pieces, which can be replaced by representative players, leads to a coarse-grained description of strategic interactions. This method of summarizing complex strategic...
Persistent link: https://www.econbiz.de/10011943088
This paper studies strategic interaction in networks. We focus on games of strategic substitutes and strategic complements, and departing from previous literature, we do not assume particular functional forms on players' payoffs. By exploiting variational methods, we show that the uniqueness,...
Persistent link: https://www.econbiz.de/10011816766
We study properties of collective action problems bounded by minimal contributions as well as endowment and variable contributions are neighbourhood dependent. We relate nearness to non-interior agents and its implication for interior contribution. Here, we see the aspects of node distance to...
Persistent link: https://www.econbiz.de/10012664390
This paper analyzes the private provision of public goods where consumers interact within a fixed network structure and may benefit only from their direct neighbors' provisions. We present a proof of the existence and uniqueness of a Nash equilibrium for general networks and best-reply...
Persistent link: https://www.econbiz.de/10011263570