2015

Network Games with Incomplete Information

Reprint No. 2015:67

Author(s): Joan de Martí and Yves ZenouYear: 2015 Title: Journal of Mathematical Economics Volume (No.): 61 (December) Pages: 221–240
Online article (restrictions may apply)


We consider a network game with strategic complementarities where the individual reward or the strength of interactions is only partially known by the agents. Players receive different correlated signals and they make inferences about other players’ information. We demonstrate that there exists a unique Bayesian-Nash equilibrium. We characterize the equilibrium by disentangling the information effects from the network effects and show that the equilibrium effort of each agent is a weighted combinations of different Katz–Bonacich centralities.


Reference:
de Martí, Joan and Yves Zenou (2015), "Network Games with Incomplete Information". Journal of Mathematical Economics 61(December), 221–240.

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Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

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