Multi-activity Influence and Intervention

48 Pages Posted: 28 Sep 2022 Last revised: 16 Nov 2022

See all articles by Ryan Kor

Ryan Kor

National University of Singapore (NUS), Department of Economics

Junjie Zhou

Tsinghua University - Tsinghua University School of Economics and Management

Date Written: September 5, 2022

Abstract

Using a general network model with multiple activities, we analyse a planner’s welfare maximising interventions taking into account within-activity network spillovers and cross-activity interdependence. We show that the direction of the optimal intervention, under sufficiently large budgets, critically depends on the spectral properties of two matrices: the first matrix depicts the social connections among agents, while the second one quantifies the strategic interdependence among different activities. In particular, the first principal component of the interdependence matrix determines budget resource allocation across different activities, while the first (last) principal component of the network matrix shapes the resource allocation across different agents when network effects are strategic complements (substitutes). We explore some comparative statics analysis with respective to model primitives and discuss several applications and extensions.

Keywords: Networks, multiple activities, interventions, centralities

Suggested Citation

Kor, Ryan and Zhou, Junjie, Multi-activity Influence and Intervention (September 5, 2022). Games and Economic Behavior, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4225426 or http://dx.doi.org/10.2139/ssrn.4225426

Ryan Kor (Contact Author)

National University of Singapore (NUS), Department of Economics ( email )

Singapore
Singapore

Junjie Zhou

Tsinghua University - Tsinghua University School of Economics and Management ( email )

Beijing
China

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