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
Englisch

Bibliographic citation
Series: School of Economics Discussion Papers ; No. 2109

Classification
Wirtschaft
Noncooperative Games
Personal Income, Wealth, and Their Distributions
Network Formation and Analysis: Theory
Public Goods
Subject
aggregation
modular decomposition
network games
public goods
stability

Event
Geistige Schöpfung
(who)
Allouch, Nizar
Event
Veröffentlichung
(who)
University of Kent, School of Economics
(where)
Canterbury
(when)
2021

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Allouch, Nizar
  • University of Kent, School of Economics

Time of origin

  • 2021

Other Objects (12)