Games Played on Networks

Yann Bramoullé and Rachel Kranton
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Rachel Kranton: Duke University [Durham]

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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.

Keywords: network games; fixed networks; peer effects; coordination; interdependence (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-gth, nep-net, nep-soc and nep-ure
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01180657
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Games Played on Networks (2016)
Working Paper: Games Played on Networks (2015)
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