American Economic Journal: Microeconomics
no. 3, August 2018
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.
"Multiple Activities in Networks."
American Economic Journal: Microeconomics,
Consumer Economics: Theory
Network Formation and Analysis: Theory
Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification