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Efficient networks in games with local complementarities

Abstract : We address the problem of a planner looking for the efficient network when agents play a network game with local complementarities and links are costly. We show that for general network cost functions, efficient networks belong to the class of Nested-Split Graphs. Next, we refine our results and find that, depending on the specification of the network cost function, complete networks, core-periphery networks, dominant group architectures, quasi-star and quasi-complete networks can be efficient.
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Contributor : Patrice Cacciuttolo <>
Submitted on : Friday, March 5, 2021 - 12:39:25 PM
Last modification on : Tuesday, March 9, 2021 - 3:29:16 AM

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Mohamed Belhaj, Sebastian Bervoets, Frédéric Deroïan. Efficient networks in games with local complementarities. Theoretical Economics, Econometric Society, 2016, 11 (1), pp.357--380. ⟨10.3982/TE1742⟩. ⟨hal-01446213⟩

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