Games Played on Networks

Abstract

This chapter studies games played on fixed networks. These games capture a wide variety of economic settings, including local public goods, peer effects, and technology adoption. The chapter establishes a common analytical framework to study a wide game class. The authors review and advance existing results by showing how they tie together within the common framework. The chapter discusses the game-theoretic underpinnings of key notions including Bonacich centrality and the lowest and largest eigenvalue. The text discusses the interplay of individual heterogeneity and the network and develops a new notion—interdependence—to analyze how a shock to one agent affects the action of another agent.

Identifiers

DOI

10.1093/oxfordhb/9780199948277.013.8

Citations and references