Interaction on Hypergraphs

Jacques Durieu, Hans Haller () and Philippe Solal
Additional contact information
Jacques Durieu: CREUSET, University of Saint-Etienne, Postal: 42023 Saint-Etienne, France
Hans Haller: Department of Economics, Virginia Polytechnic Institute and State University, Postal: Blacksburg, VA 24061-0316, USA

No 05-34, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim

Abstract: Interaction on hypergraphs generalizes interaction on graphs, also known as pairwise local interaction. For games played on a hypergraph which are supermodular potential games, logit-perturbed best-response dynamics are studied. We find that the associated stochastically stable states form a sublattice of the lattice of Nash equilibria and derive comparative statics results for the smallest and the largest stochastically stable state. In the special case of networking games, we obtain comparative statics results with respect to investment costs, for Nash equilibria of supermodular games as well as for Nash equilibria of submodular games.

Pages: 27 pages
Date: 2005-10-22
New Economics Papers: this item is included in nep-gth
Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged. This paper was written while Hans Haller was visiting the SFB 504, University of Mannheim.
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Working Paper: Interaction on Hypergraphs (2005)
Working Paper: Interaction on hypergraphs (2005)
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