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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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https://hal-amu.archives-ouvertes.fr/hal-01446213
Contributor : Patrice Cacciuttolo <>
Submitted on : Wednesday, January 25, 2017 - 4:33:27 PM
Last modification on : Wednesday, August 5, 2020 - 3:15:47 AM

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  • HAL Id : hal-01446213, version 1

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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. ⟨hal-01446213⟩

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