Efficiency Bound for Social Interaction Models with Network Structures

Ryota Ishikawa ()
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Ryota Ishikawa: Graduate School of Economics, Waseda University

No 2524, Working Papers from Waseda University, Faculty of Political Science and Economics

Abstract: Bramoull´e et al. (2009) considered a linear social interaction model with network structures under complete information. However, their model is not appropriate for the case where the individual outcome is not completely observed or not precisely predictable by the other individuals in the same group. In this paper, we consider a linear social interaction model with network structures under incomplete information and derive the efficiency bound. The efficiency bound for the model considered in this paper had not been derived before. We also provide a sufficient condition for the existence of the efficiency bound.

Pages: 12 pages
Date: 2025-12
New Economics Papers: this item is included in nep-ecm and nep-net
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