EconPapers    
Economics at your fingertips  
 

Strategic Interaction and Networks

Yann Bramoullé, Rachel Kranton and Martin d'Amours
Additional contact information
Rachel Kranton: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: Geography and social links shape economic interactions. In industries, schools, and markets, the entire network determines outcomes. This paper analyzes a large class of games and obtains a striking result. Equilibria depend on a single network measure: the lowest eigenvalue. This paper is the first to uncover the importance of the lowest eigenvalue to economic and social outcomes. It captures how much the network amplifies agents' actions. The paper combines new tools--potential games, optimization, and spectral graph theory--to solve for all Nash and stable equilibria and applies the results to R&D, crime, and the econometrics of peer effects.

Keywords: Geography economic; Social economic; Industry; School; Market; Game (search for similar items in EconPapers)
Date: 2014-03
References: Add references at CitEc
Citations: View citations in EconPapers (166)

Published in The American Economic Review, 2014, 104 (3), pp.898-930. ⟨10.1257/aer.104.3.898⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Strategic Interaction and Networks (2014) Downloads
Working Paper: Strategic Interaction and Networks (2014)
Working Paper: Strategic Interaction and Networks (2010) Downloads
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:hal:journl:halshs-00978692

DOI: 10.1257/aer.104.3.898

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-19
Handle: RePEc:hal:journl:halshs-00978692