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Dynamic competition over social networks

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  • Mandel, Antoine
  • Venel, Xavier

Abstract

We propose an analytical approach to the problem of influence maximization in a social network where two players compete by means of dynamic targeting strategies. We formulate the problem as a two-player zero-sum stochastic game. We prove the existence of the uniform value: if the players are sufficiently patient, both can guarantee the same mean-average opinion without knowing the exact length of the game. Furthermore, we put forward some elements for the characterization of equilibrium strategies. In general, players must implement a trade-off between a forward-looking perspective, according to which they aim to maximize the future spread of their opinion in the network, and a backward-looking perspective, according to which they aim to counteract their opponent’s previous actions. When the influence potential of players is small, we describe an equilibrium through a one-shot game based on eigenvector centrality.

Suggested Citation

  • Mandel, Antoine & Venel, Xavier, 2020. "Dynamic competition over social networks," European Journal of Operational Research, Elsevier, vol. 280(2), pages 597-608.
  • Handle: RePEc:eee:ejores:v:280:y:2020:i:2:p:597-608
    DOI: 10.1016/j.ejor.2019.07.028
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    Cited by:

    1. Sebastiano Della Lena, 2019. "Non-Bayesian Social Learning and the Spread of Misinformation in Networks," Working Papers 2019:09, Department of Economics, University of Venice "Ca' Foscari".
    2. Juli'an Chitiva & Xavier Venel, 2024. "Continuous Social Networks," Papers 2407.11710, arXiv.org.
    3. Duvocelle, Benoit & Flesch, János & Staudigl, Mathias & Vermeulen, Dries, 2022. "A competitive search game with a moving target," European Journal of Operational Research, Elsevier, vol. 303(2), pages 945-957.
    4. Tavasoli, Ali & Shakeri, Heman & Ardjmand, Ehsan & Young, William A., 2021. "Incentive rate determination in viral marketing," European Journal of Operational Research, Elsevier, vol. 289(3), pages 1169-1187.
    5. Mishra, Rajat & Rasheed, Abdul A. & Yasar, Mahmut & Napier, Randy & Nakkas, Alper, 2021. "Inventory positions in US manufacturing: A competitive dynamics approach," International Journal of Production Economics, Elsevier, vol. 238(C).
    6. Liu, Yezheng & Qian, Yang & Jiang, Yuanchun & Shang, Jennifer, 2020. "Using favorite data to analyze asymmetric competition: Machine learning models," European Journal of Operational Research, Elsevier, vol. 287(2), pages 600-615.
    7. Carayannis, Elias G. & Grigoroudis, Evangelos & Wurth, Bernd, 2022. "OR for entrepreneurial ecosystems: A problem-oriented review and agenda," European Journal of Operational Research, Elsevier, vol. 300(3), pages 791-808.
    8. Emilien Macault, 2022. "Stochastic Consensus and the Shadow of Doubt," Papers 2201.12100, arXiv.org.
    9. Cao, Yiyin & Dang, Chuangyin & Xiao, Zhongdong, 2022. "A differentiable path-following method to compute subgame perfect equilibria in stationary strategies in robust stochastic games and its applications," European Journal of Operational Research, Elsevier, vol. 298(3), pages 1032-1050.

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    More about this item

    Keywords

    Game theory; Social network; Dynamic games; Targeting; Stochastic games;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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