EconPapers    
Economics at your fingertips  
 

Strategic analysis in complex networks with local externalities

Andrea Galeotti () and Fernando Vega-Redondo

No 1224, Working Papers from California Institute of Technology, Division of the Humanities and Social Sciences

Abstract: In this paper, we discuss a model with local positive externalities on a complex random network that allows for wide heterogeneities among the agents. The situation can be analyzed as a game of incomplete information where each player's connectivity is her type. We focus on three paradigmatic cases in which the overall degree distribution is Poisson, exponential, and scale-free (given by a power law). For each of them, we characterize the equilibria and obtain interesting insights on the interplay between network topology and payoffs. For example, we reach the somewhat paradoxical conclusion that a broad degree distribution or/and too low a cost of effort render it difficult, if not impossible, to sustain an (efficient) high-effort configuration at equilibrium.

Keywords: Complex networks; local externalities (search for similar items in EconPapers)
Pages: 24 pages
Date: 2005-06
New Economics Papers: this item is included in nep-gth and nep-net
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.hss.caltech.edu/SSPapers/wp1224.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
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:clt:sswopa:1224

Ordering information: This working paper can be ordered from
Working Paper Assistant, Division of the Humanities and Social Sciences, 228-77, Caltech, Pasadena CA 91125

Access Statistics for this paper

More papers in Working Papers from California Institute of Technology, Division of the Humanities and Social Sciences Working Paper Assistant, Division of the Humanities and Social Sciences, 228-77, Caltech, Pasadena CA 91125.
Bibliographic data for series maintained by Victoria Mason ().

 
Page updated 2021-06-12
Handle: RePEc:clt:sswopa:1224