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Who's Who in Networks. Wanted: The Key Player

Coralio Ballester (), Antoni Calvó-Armengol and Yves Zenou ()

Econometrica, 2006, vol. 74, issue 5, 1403-1417

Abstract: Finite population noncooperative games with linear-quadratic utilities, where each player decides how much action she exerts, can be interpreted as a network game with local payoff complementarities, together with a globally uniform payoff substitutability component and an own-concavity effect. For these games, the Nash equilibrium action of each player is proportional to her Bonacich centrality in the network of local complementarities, thus establishing a bridge with the sociology literature on social networks. This Bonacich-Nash linkage implies that aggregate equilibrium increases with network size and density. We then analyze a policy that consists of targeting the key player, that is, the player who, once removed, leads to the optimal change in aggregate activity. We provide a geometric characterization of the key player identified with an intercentrality measure, which takes into account both a player's centrality and her contribution to the centrality of the others. Copyright The Econometric Society 2006.

Date: 2006
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Working Paper: Who's Who in Networks. Wanted: the Key Player (2005) Downloads
Working Paper: Who’s Who in Networks. Wanted: The Key Player (2005) Downloads
Working Paper: Who's Who in Networks. Wanted: The Key Player (2004) Downloads
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