Year: 2024
Type: preprint
Abstract: How does network structure shape strategic behaviour? We test equilibrium predictions in laboratory experiments with strategic complements and substitutes on simple and complex networks. We find that actions rise with network centrality, but far less than equilibrium predicts, with greater attenuation in complex networks. This attenuation is more pronounced in subjects with weaker comprehension. We develop a new model of behavioural equilibrium in which individuals combine their network position-specific best response with a default action shaped by average population be-haviour and successful actions. Accounting for this behaviour changes optimal network targeting and improves welfare gains from interventions in complex networks.
DOI: 10.17863/cam.118356
Authors: Guo, F., Choi, S., Goyal, S., Moisan, F.
Language: English
Subfield: Safety Research
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
Awards: G4822046208, G8605510067
OpenAlex ID: W6887858110
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