A note on local spillovers, convexity, and the strategic substitutes property in networks

A note on local spillovers, convexity, and the strategic substitutes property in networks

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Article ID: iaor20134253
Volume: 75
Issue: 2
Start Page Number: 293
End Page Number: 304
Publication Date: Aug 2013
Journal: Theory and Decision
Authors: , ,
Keywords: game theory
Abstract:

We provide existence results in a game with local spillovers where the payoff function satisfies both convexity and the strategic substitutes property. We show that there always exists a stable pairwise network in this game, and provide a condition which ensures the existence of pairwise equilibrium networks.

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