On the Equilibrium Properties of Network Models with Heterogeneous Agents
52 Pages Posted: 21 Sep 2020 Last revised: 17 Jul 2022
Date Written: September 2020
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: Suggested Citation