Targeting the Key Player: An Incentive-Based Approach

Mohamed Belhaj () and Frédéric Deroïan ()

No 1804, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: We consider a network game with local complementarities. A policymaker, aiming at minimizing or maximizing aggregate effort, contracts with a single agent on the network to trade effort change against transfer. The policymaker has to find the best agent and the optimal contract to offer. Our study shows that for all utilities with linear best-responses, it only takes two statistics about the position of each agent on the network to identify the key player: the Bonacich centrality and a weighted measure of the number of closed walks originating from the agent. We also characterize key players under linear quadratic utilities for various contractual arrangements.

Keywords: key player; Network; Linear Interaction; incentives; contract; limited budget (search for similar items in EconPapers)
JEL-codes: C72 D85 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2018-02
New Economics Papers: this item is included in nep-cta, nep-gth, nep-hrm, nep-mic, nep-net and nep-ore
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.amse-aixmarseille.fr/sites/default/fil ... /wp_2018_-_nr_04.pdf (application/pdf)

Related works:
Journal Article: Targeting the key player: An incentive-based approach (2018)
Working Paper: Targeting the key player: An incentive-based approach (2018)
Working Paper: Targeting the Key Player: An Incentive-Based Approach (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1804

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().