Behavioral Attenuation in Networks

Fulin Guo, Syngjoo Choi, Sanjeev Goyal and Frédéric Moisan

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: How does network structure shape strategic behaviour? We test equilibrium predictions in laboratory experiments with strategic complements and substitutes on simple and complex networks. We find that actions rise with network centrality, but far less than equilibrium predicts, with greater attenuation in complex networks. This attenuation is more pronounced in subjects with weaker comprehension. We develop a new model of behavioural equilibrium in which individuals combine their network position-specific best response with a default action shaped by average population be-haviour and successful actions. Accounting for this behaviour changes optimal network targeting and improves welfare gains from interventions in complex networks.

Keywords: Centrality; Behavioural Biases; Networks (search for similar items in EconPapers)
JEL-codes: C92 D83 D85 Z13 (search for similar items in EconPapers)
Date: 2026-08-14
New Economics Papers: this item is included in nep-exp and nep-soc
Note: sg472
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:2478

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