Multiple activities in networks

Ying Ju Chen, Yves Zenou, Junjie Zhou

Research output: Contribution to journalArticleResearchpeer-review

8 Citations (Scopus)

Abstract

We consider a network model where individuals exert efforts in two types of activities that are interdependent. These activities can be either substitutes or complements. We provide a full characterization of the Nash equilibrium of this game for any network structure. We show, in particular, that quadratic games with linear best- reply functions aggregate nicely to multiple activities because equilibrium efforts obey similar formulas to that of the one- activity case. We then derive some comparative-statics results showing how own productivity affects equilibrium efforts and how network density impacts equilibrium outcomes.

Original languageEnglish
Pages (from-to)34-85
Number of pages52
JournalAmerican Economic Journal: Microeconomics
Volume10
Issue number3
DOIs
Publication statusPublished - Aug 2018

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