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Strategic Interaction and Networks

Publication ,  Journal Article
Bramoull, Y; Kranton, R; D'Amours, M
Published in: American Economic Review
March 2014

Geography and social links shape economic interactions. In industries, schools, and markets, the entire network determines outcomes. This paper analyzes a large class of games and obtains a striking result. Equilibria depend on a single network measure: the lowest eigenvalue. This paper is the first to uncover the importance of the lowest eigenvalue to economic and social outcomes. It captures how much the network amplifies agents' actions. The paper combines new tools?potential games, optimization, and spectral graph theory?to solve for all Nash and stable equilibria and applies the results to R&D, crime, and the econometrics of peer effects.

Duke Scholars

Published In

American Economic Review

Publication Date

March 2014

Volume

104

Issue

3

Start / End Page

898 / 930

Related Subject Headings

  • Economics
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics
 

Citation

APA
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ICMJE
MLA
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Bramoull, Y., Kranton, R., & D’Amours, M. (2014). Strategic Interaction and Networks. American Economic Review, 104(3), 898–930.
Bramoull, Yann, Rachel Kranton, and Martin D’Amours. “Strategic Interaction and Networks.” American Economic Review 104, no. 3 (March 2014): 898–930.
Bramoull Y, Kranton R, D’Amours M. Strategic Interaction and Networks. American Economic Review. 2014 Mar;104(3):898–930.
Bramoull, Yann, et al. “Strategic Interaction and Networks.” American Economic Review, vol. 104, no. 3, Mar. 2014, pp. 898–930.
Bramoull Y, Kranton R, D’Amours M. Strategic Interaction and Networks. American Economic Review. 2014 Mar;104(3):898–930.

Published In

American Economic Review

Publication Date

March 2014

Volume

104

Issue

3

Start / End Page

898 / 930

Related Subject Headings

  • Economics
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics