American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Multiple Activities in Networks
American Economic Journal: Microeconomics
vol. 10,
no. 3, August 2018
(pp. 34–85)
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.Citation
Chen, Ying-Ju, Yves Zenou, and Junjie Zhou. 2018. "Multiple Activities in Networks." American Economic Journal: Microeconomics, 10 (3): 34–85. DOI: 10.1257/mic.20160253Additional Materials
JEL Classification
- C72 Noncooperative Games
- D11 Consumer Economics: Theory
- D85 Network Formation and Analysis: Theory
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
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