Externalities aggregation in network games

Francesco Feri, Paolo Pin

Research output: Contribution to journalArticlepeer-review

Abstract

We generalize the results on the monotonicity of equilibria for network games with incomplete information. We show that not only is the distinction between strategic complements and strategic substitutes important in determining the nature of the Bayesian Nash equilibria, but the nature of the statistic itself is also determinant. We show that understanding the underlying forces behind people's choices may be of fundamental importance for a policy maker that wants to incentivize efficient behavior.
Original languageEnglish
Pages (from-to)1635-1658
Number of pages24
JournalInternational Economic Review
Volume61
Issue number4
Early online date3 Jun 2020
DOIs
Publication statusPublished - Nov 2020

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