Targeting the Key Player: An Incentive-Based Approach

Mohamed Belhaj () and Frédéric Deroïan ()

Working Papers from HAL

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)
Date: 2018-02
New Economics Papers: this item is included in nep-cta, nep-gth, nep-hrm, nep-mic, nep-net, nep-reg and nep-upt
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01699849v1
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Citations: View citations in EconPapers (4)

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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)
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