Arbeitspapier
Aggregation in networks
In this paper, we show that a concept of aggregation can hold in large network games with linear best replies. Breaking up large networks into smaller subnetworks, which can be replaced by representative players, leads to a coarse-grained description of strategic interactions. This method of summarizing complex strategic interactions by simple ones can be applied to compute all Nash equilibria for the special network structure of cograph. A key finding is that a stable Nash equilibrium of the large network game can be decomposed into a collection of Nash equilibria of subnetwork games. Thereby, we establish a systematic relationship between player's position in a subnetwork and his equilibrium action in the large network game.
- Language
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Englisch
- Bibliographic citation
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Series: School of Economics Discussion Papers ; No. 2109
- Classification
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Wirtschaft
Noncooperative Games
Personal Income, Wealth, and Their Distributions
Network Formation and Analysis: Theory
Public Goods
- Subject
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aggregation
modular decomposition
network games
public goods
stability
- Event
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Geistige Schöpfung
- (who)
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Allouch, Nizar
- Event
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Veröffentlichung
- (who)
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University of Kent, School of Economics
- (where)
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Canterbury
- (when)
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2021
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Allouch, Nizar
- University of Kent, School of Economics
Time of origin
- 2021