Local Spillovers, Convexity and the Strategic Substitutes Property in Networks

GATE Working Paper No. 1110

20 Pages Posted: 9 Mar 2011

See all articles by Pascal Billand

Pascal Billand

Jean Monnet University

Christophe Bravard

Jean Monnet University, Saint-Etienne - CREUSET

Sudipta Sarangi

Virginia Polytechnic Institute & State University

Date Written: March 1, 2011

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. Moreover, our existence proof allows us to characterize a pairwise equilibrium of these networks.

Keywords: networks, existence, spillovers

JEL Classification: C70, D85

Suggested Citation

Billand, Pascal and Bravard, Christophe and Sarangi, Sudipta, Local Spillovers, Convexity and the Strategic Substitutes Property in Networks (March 1, 2011). GATE Working Paper No. 1110, Available at SSRN: https://ssrn.com/abstract=1780903 or http://dx.doi.org/10.2139/ssrn.1780903

Pascal Billand (Contact Author)

Jean Monnet University ( email )

34, rue Francis Baulier
Saint-Etienne, 42023
France

Christophe Bravard

Jean Monnet University, Saint-Etienne - CREUSET ( email )

34, rue Francis Baulier
Saint-Etienne, 42023
France

Sudipta Sarangi

Virginia Polytechnic Institute & State University ( email )

250 Drillfield Drive
Blacksburg, VA 24061
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
17
Abstract Views
452
PlumX Metrics