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Equilibrium Uniqueness in Network Games with Strategic Substitutes

Author

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  • Yann Rébillé

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

  • Lionel Richefort

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

A local public goods game in weighted and directed networks is analyzed. Individual efforts are imperfect substitutes, players' preferences are heterogeneous and local externalities are non-uniform and asymmetric. Sufficient conditions under which the game admits a unique equilibrium are established in terms of the number of links between agents in the original network. It appears that these latter conditions for uniqueness are met if, and only if, the structure of relationships is \emph{productive}. That is, a parallel can be established between network games with strategic substitutes and the input-output theory pioneered by Wassily Leontief.

Suggested Citation

  • Yann Rébillé & Lionel Richefort, 2012. "Equilibrium Uniqueness in Network Games with Strategic Substitutes," Working Papers hal-00671555, HAL.
    • Handle: RePEc:hal:wpaper:hal-00671555
    Note: View the original document on HAL open archive server: https://hal.science/hal-00671555
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    Keywords

    local public goods; Nash equilibrium; generalized degree; productive matrix; Leontief model;
    All these keywords.

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