IDEAS home Printed from https://ideas.repec.org/a/wly/iecrev/v64y2023i4p1533-1563.html
   My bibliography  Save this article

Structural Interventions In Networks

Author

Listed:
  • Yang Sun
  • Wei Zhao
  • Junjie Zhou

Abstract

Two types of interventions are commonly implemented in networks: characteristics interventions, which influence individuals' intrinsic incentives, and structural interventions, which target the social links among individuals. In this article, we provide a general framework to evaluate the distinct equilibrium effects of both types of interventions. We show that any structural intervention is outcome‐equivalent to an endogenously determined characteristics intervention. We present a wide range of applications of our theory, including evaluating a potential new link in a community, identifying the most wanted criminal(s) in delinquent networks, and determining whether a structural intervention improves certain welfare measures.

Suggested Citation

  • Yang Sun & Wei Zhao & Junjie Zhou, 2023. "Structural Interventions In Networks," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(4), pages 1533-1563, November.
  • Handle: RePEc:wly:iecrev:v:64:y:2023:i:4:p:1533-1563
    DOI: 10.1111/iere.12639
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/iere.12639
    Download Restriction: no

    File URL: https://libkey.io/10.1111/iere.12639?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Verdier, Thierry & Zenou, Yves, 2018. "Cultural leader and the dynamics of assimilation," Journal of Economic Theory, Elsevier, vol. 175(C), pages 374-414.
    2. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2006. "Who's Who in Networks. Wanted: The Key Player," Econometrica, Econometric Society, vol. 74(5), pages 1403-1417, September.
    3. Bloch, Francis & Quérou, Nicolas, 2013. "Pricing in social networks," Games and Economic Behavior, Elsevier, vol. 80(C), pages 243-261.
    4. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    5. , D. & Tessone, Claudio J. & ,, 2014. "Nestedness in networks: A theoretical model and some applications," Theoretical Economics, Econometric Society, vol. 9(3), September.
    6. Matthew L Elliott & Sanjeev Goyal & Alexander Teytelboym, 2019. "Networks and economic policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(4), pages 565-585.
    7. Bloch, Francis & Dutta, Bhaskar, 2009. "Communication networks with endogenous link strength," Games and Economic Behavior, Elsevier, vol. 66(1), pages 39-56, May.
    8. Ryan Kor & Junjie Zhou, 2022. "Welfare and Distributional Effects of Joint Intervention in Networks," Papers 2206.03863, arXiv.org.
    9. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2017. "The Economic Consequences of Social-Network Structure," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 49-95, March.
    10. David Rezza Baqaee, 2018. "Cascading Failures in Production Networks," Econometrica, Econometric Society, vol. 86(5), pages 1819-1838, September.
    11. Yann Bramoull? & Rachel Kranton & Martin D'Amours, 2014. "Strategic Interaction and Networks," American Economic Review, American Economic Association, vol. 104(3), pages 898-930, March.
    12. Andrea Galeotti & Benjamin Golub & Sanjeev Goyal, 2020. "Targeting Interventions in Networks," Econometrica, Econometric Society, vol. 88(6), pages 2445-2471, November.
    13. Jing Cai & Adam Szeidl, 2018. "Interfirm Relationships and Business Performance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1229-1282.
    14. Ernest Liu, 2019. "Industrial Policies in Production Networks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1883-1948.
    15. Verdier, Thierry & Zenou, Yves, 2015. "The role of cultural leaders in the transmission of preferences," Economics Letters, Elsevier, vol. 136(C), pages 158-161.
    16. Baumann, Leonie, 2021. "A model of weighted network formation," Theoretical Economics, Econometric Society, vol. 16(1), January.
    17. Eleonora Patacchini & Yves Zenou, 2012. "Juvenile Delinquency and Conformism," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 28(1), pages 1-31.
    18. Belhaj, Mohamed & Bramoullé, Yann & Deroïan, Frédéric, 2014. "Network games under strategic complementarities," Games and Economic Behavior, Elsevier, vol. 88(C), pages 310-319.
    19. Bramoulle, Yann & Galeotti, Andrea & Rogers, Brian (ed.), 2016. "The Oxford Handbook of the Economics of Networks," OUP Catalogue, Oxford University Press, number 9780199948277.
    20. Daron Acemoglu & Vasco M. Carvalho & Asuman Ozdaglar & Alireza Tahbaz‐Salehi, 2012. "The Network Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 80(5), pages 1977-2016, September.
    21. Matthew Elliott & Benjamin Golub, 2019. "A Network Approach to Public Goods," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 730-776.
    22. Antoni Calvó-Armengol & Eleonora Patacchini & Yves Zenou, 2009. "Peer Effects and Social Networks in Education," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(4), pages 1239-1267.
    23. Ozan Candogan & Kostas Bimpikis & Asuman Ozdaglar, 2012. "Optimal Pricing in Networks with Externalities," Operations Research, INFORMS, vol. 60(4), pages 883-905, August.
    24. Demange, Gabrielle, 2017. "Optimal targeting strategies in a network under complementarities," Games and Economic Behavior, Elsevier, vol. 105(C), pages 84-103.
    25. Jadbabaie, Ali & Kakhbod, Ali, 2019. "Optimal contracting in networks," Journal of Economic Theory, Elsevier, vol. 183(C), pages 1094-1153.
    26. Parise, Francesca & Ozdaglar, Asuman, 2019. "A variational inequality framework for network games: Existence, uniqueness, convergence and sensitivity analysis," Games and Economic Behavior, Elsevier, vol. 114(C), pages 47-82.
    27. Bruce Sacerdote, 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 681-704.
    28. repec:hal:pseose:hal-01013603 is not listed on IDEAS
    29. Hiller, Timo, 2017. "Peer effects in endogenous networks," Games and Economic Behavior, Elsevier, vol. 105(C), pages 349-367.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang Sun & Wei Zhao & Junjie Zhou, 2021. "Structural Interventions in Networks," Papers 2101.12420, arXiv.org, revised Feb 2021.
    2. Ryan Kor & Junjie Zhou, 2022. "Welfare and Distributional Effects of Joint Intervention in Networks," Papers 2206.03863, arXiv.org.
    3. Jackson, Matthew O. & Zenou, Yves, 2015. "Games on Networks," Handbook of Game Theory with Economic Applications,, Elsevier.
    4. Thomas J. Sargent & John Stachurski, 2022. "Economic Networks: Theory and Computation," Papers 2203.11972, arXiv.org, revised Jul 2022.
    5. Harkins, Andrew, 2020. "Network Comparative Statics," The Warwick Economics Research Paper Series (TWERPS) 1306, University of Warwick, Department of Economics.
    6. Li, Xueheng, 2023. "Designing weighted and directed networks under complementarities," Games and Economic Behavior, Elsevier, vol. 140(C), pages 556-574.
    7. Harkins, Andrew, 2020. "Network Comparative Statics," CRETA Online Discussion Paper Series 64, Centre for Research in Economic Theory and its Applications CRETA.
    8. Ushchev, Philip & Zenou, Yves, 2020. "Social norms in networks," Journal of Economic Theory, Elsevier, vol. 185(C).
    9. Bloch, Francis & Shabayek, Shaden, 2023. "Targeting in social networks with anonymized information," Games and Economic Behavior, Elsevier, vol. 141(C), pages 380-402.
    10. Chen, Ying-Ju & Zenou, Yves & Zhou, Junjie, 2022. "The impact of network topology and market structure on pricing," Journal of Economic Theory, Elsevier, vol. 204(C).
    11. Ushchev, Philip & Zenou, Yves, 2018. "Price competition in product variety networks," Games and Economic Behavior, Elsevier, vol. 110(C), pages 226-247.
    12. Hiller, Timo, 2022. "A simple model of network formation with competition effects," Journal of Mathematical Economics, Elsevier, vol. 99(C).
    13. Chih-Sheng Hsieh & Stanley I. M. Ko & Jaromír Kovářík & Trevon Logan, 2018. "Non-Randomly Sampled Networks: Biases and Corrections," NBER Working Papers 25270, National Bureau of Economic Research, Inc.
    14. Kor, Ryan & Zhou, Junjie, 2023. "Multi-activity influence and intervention," Games and Economic Behavior, Elsevier, vol. 137(C), pages 91-115.
    15. Zenou, Yves & Lindquist, Matthew & Sauermann, Jan, 2015. "Network Effects on Worker Productivity," CEPR Discussion Papers 10928, C.E.P.R. Discussion Papers.
    16. Luca Colombo & Paola Labrecciosa & Agnieszka Rusinowska, 2022. "A Dynamic Analysis of Criminal Networks," Documents de travail du Centre d'Economie de la Sorbonne 22006r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Jun 2023.
    17. Díaz, Carlos & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2021. "Leaders in juvenile crime," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 638-667.
    18. Jadbabaie, Ali & Kakhbod, Ali, 2019. "Optimal contracting in networks," Journal of Economic Theory, Elsevier, vol. 183(C), pages 1094-1153.
    19. Liza Charroin, 2018. "Homophily, peer effects and dishonesty," Post-Print halshs-01993618, HAL.
    20. Áureo de Paula, 2015. "Econometrics of network models," CeMMAP working papers CWP52/15, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:iecrev:v:64:y:2023:i:4:p:1533-1563. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.