Multiple Activities in Networks

Reprint No. 2018:48

Author(s): Ying-Ju Chen, Yves Zenou and Junjie ZhouYear: 2018 Title: American Economic Journal: Microeconomics Volume (No.): 10 (3) Pages: 34–85
Online article (restrictions may apply)

We consider a network model where individuals exert efforts in two types of activities that are interdependent. These activities can be either substitutes or complements. We provide a full characterization of the Nash equilibrium of this game for any network structure. We show, in particular, that quadratic games with linear best-reply functions aggregate nicely to multiple activities because equilibrium efforts obey similar formulas to that of the one-activity case. We then derive some comparative statics results showing how own productivity affects equilibrium efforts and how network density impacts equilibrium outcomes.

Chen, Ying-Ju, Yves Zenou and Junjie Zhou (2018), "Multiple Activities in Networks". American Economic Journal: Microeconomics 10(3), 34–85.

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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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