Mathieu Faure

ecolunch
online

Mathieu Faure

AMSE
Perceived competition
Date(s)
Thursday, May 27 2021| 11:00am to 12:00pm
Contact(s)

Gaëtan Fournier: gaetan.fournier[at]univ-amu.fr
Evgeny Tsodikovich: evgeny.tsodikovich[at]univ-amu.fr

Abstract

Agents compete for the same resources and are only aware of their direct neighbors in a network. The natural outcome of repeated interactions in these settings is what we call peer-consistent equilibrium (PCE).  We decompose the network into communities and completely characterize peer-consistent equilibria by identifying which sets of agents can be active in equilibrium. An agent is active if she either belongs to a strong community or if few agents are aware of her existence. We show that there is a unique stable PCE, in which agents’ effort levels are proportional to their eigenvector centrality in the network.

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