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Endogenous effort in communication networks under strategic complementarity

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  • Mohamed Belhaj
  • Frédéric Deroian

Abstract

This article explores individual incentives to produce information on communication networks. In our setting, efforts are strategic complements along communication paths with convex decay. We analyze Nash equilibria on a set of networks which are unambiguous in terms of centrality. We first characterize both dominant and dominated equilibria. Second, we examine the issue of social coordination in order to reduce the social dilemma.
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Suggested Citation

  • Mohamed Belhaj & Frédéric Deroian, 2010. "Endogenous effort in communication networks under strategic complementarity," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(3), pages 391-408, July.
    • Handle: RePEc:spr:jogath:v:39:y:2010:i:3:p:391-408
    DOI: 10.1007/s00182-009-0195-0
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    Cited by:

    1. Yann Bramoullé & Rachel Kranton, 2015. "Games Played on Networks," Working Papers halshs-01180657, HAL.
    2. Belhaj, Mohamed & Bramoullé, Yann & Deroïan, Frédéric, 2014. "Network games under strategic complementarities," Games and Economic Behavior, Elsevier, vol. 88(C), pages 310-319.

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    More about this item

    Keywords

    Communication network; Endogenous efforts; Strategic complements; D85; C72;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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