On the Equilibrium Properties of Network Models with Heterogeneous Agents

52 Pages Posted: 21 Sep 2020 Last revised: 17 Jul 2022

See all articles by Treb Allen

Treb Allen

Dartmouth College

Costas Arkolakis

Yale University - Department of Economics; National Bureau of Economic Research (NBER); Yale University - Cowles Foundation

XIANGLIANG LI

Yale University

Date Written: September 2020

Abstract

We consider a broad class of network models where a large number of heterogeneous agents simultaneously interact in many ways. We provide a new theorem that offers an iterative algorithm for calculating an equilibrium and sufficient and “globally necessary” conditions under which the equilibrium is unique. We show that a wide variety of heterogeneous agent economies yield equilibrium representations amenable to our theorem’s characterization.

Suggested Citation

Allen, Treb and Arkolakis, Costas and LI, XIANGLIANG, On the Equilibrium Properties of Network Models with Heterogeneous Agents (September 2020). NBER Working Paper No. w27837, Available at SSRN: https://ssrn.com/abstract=3696204

Treb Allen (Contact Author)

Dartmouth College ( email )

Department of Sociology
Hanover, NH 03755
United States

Costas Arkolakis

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8264
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

XIANGLIANG LI

Yale University

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

Paper statistics

Downloads
1
Abstract Views
169
PlumX Metrics