Group targeting under networked synergiesJournal articleMohamed Belhaj and Frédéric Deroian, Games and Economic Behavior, Volume 118, Issue C, pp. 29-46, 2019

A principal targets agents organized in a network of local complementarities, in order to increase the sum of agents' effort. We consider bilateral public contracts à la Segal (1999). The paper shows that the synergies between contracting and non-contracting agents deeply impact optimal contracts: they can lead the principal to contract with a subset of the agents, and to refrain from contracting with central agents.

Targeting the key player: An incentive-based approachJournal articleMohamed Belhaj and Frédéric Deroian, Journal of Mathematical Economics, Volume 79, Issue C, pp. 57-64, 2018

We consider a network game with local complementarities. A policymaker, aiming at minimizing or maximizing aggregate effort, contracts with a single agent on the network to trade effort change against transfer. The policymaker has to find the best agent and the optimal contract to offer. Our study shows that for all utilities with linear best-responses, it only takes two statistics about the position of each agent on the network to identify the key player: the Bonacich centrality and the self-loop centrality. We also characterize key players under linear quadratic utilities for various contractual arrangements.

Efficient networks in games with local complementaritiesJournal articleMohamed Belhaj, Sebastian Bervoets and Frédéric Deroian, Theoretical Economics, Volume 11, Issue 1, pp. 357–380, 2016

We address the problem of a planner looking for the efficient network when agents play a network game with local complementarities and links are costly. We show that for general network cost functions, efficient networks belong to the class of Nested-Split Graphs. Next, we refine our results and find that, depending on the specification of the network cost function, complete networks, core-periphery networks, dominant group architectures, quasi-star and quasi-complete networks can be efficient.

Network games under strategic complementaritiesJournal articleMohamed Belhaj, Yann Bramoullé and Frédéric Deroian, Games and Economic Behavior, Volume 88, Issue C, pp. 310-319, 2014

We study network games under strategic complementarities. Agents are embedded in a fixed network. They choose a positive, continuous action and interact with their network neighbors. Interactions are positive and actions are bounded from above. We first derive new sufficient conditions for uniqueness, covering all concave as well as some non-concave best responses. We then study the relationship between position and action and identify situations where a more central agent always plays a higher action in equilibrium. We finally analyze comparative statics. We show that a shock may not propagate throughout the entire network and uncover a general pattern of decreasing interdependence.

Risk-Taking and Risk-Sharing Incentives under Moral HazardJournal articleMohamed Belhaj, Renaud Bourlès and Frédéric Deroian, American Economic Journal: Microeconomics, Volume 6, Issue 1, pp. 58-90, 2014

This paper explores the effect of moral hazard on both risk-taking and informal risk-sharing incentives. Two agents invest in their own project, each choosing a level of risk and effort, and share risk through transfers. This can correspond to farmers in developing countries, who share risk and decide individually upon the adoption of a risky technology. The paper mainly shows that the impact of moral hazard on risk crucially depends on the observability of investment risk, whereas the impact on transfers is much more utility dependent.

Competing Activities in Social NetworksJournal articleMohamed Belhaj and Frédéric Deroian, The B.E. Journal of Economic Analysis & Policy, Volume 14, Issue 4, pp. 36, 2014

We consider a society in which each agent has one unit of a resource to allocate between two activities. Agents are organized in a social network, and each activity generates complementarities between neighbors. We find multiplicity of equilibrium for high intensity of interaction, and we characterize equilibria in terms of specialization and polarization. Overall, results reveal the crucial role played by network geometry. The results also suggest that the structure of the social network should be taken into account for the design of a public policy in favor of a specific activity.

Strategic interaction and aggregate incentivesJournal articleMohamed Belhaj and Frédéric Deroian, Journal of Mathematical Economics, Volume 49, Issue 3, pp. 183-188, 2013

We consider a model of interdependent efforts, with linear interaction and lower bound on effort. Our setting encompasses asymmetric interaction and heterogeneous agents’ characteristics. We examine the impact of a rise of cross-effects on aggregate efforts. We show that the sign of the comparative static effects is related to a condition of balancedness of the interaction. Moreover, we point out that asymmetry and heterogeneous characteristics are sources of non-monotonic variation of aggregate efforts.

Risk taking under heterogenous revenue sharingJournal articleMohamed Belhaj and Frédéric Deroian, Journal of Development Economics, Volume 98, Issue 2, pp. 192-202, 2012

We examine the impact of informal risk sharing on risk taking incentives when transfers are organized through a social network. A bilateral partial sharing rule satisfies that neighbors share equally a part of their revenue. In such a society, correlated technologies generate interdependent risk levels. We obtain three findings. First, there is a unique and interior Nash-equilibrium risk profile, and it is in general differentiated and related to the Bonacich measure of the risk sharing network. Second, more revenue sharing enhances risk taking on average, although some agents may lower their risk level. Last, we find that under investment might often be observed.

Comments on ‘On Optimal Dividend Payouts Under Jump-Diffusion Risk Processes‘Journal articleMohamed Belhaj, Stochastic models, Volume 28, Issue 1, pp. 185-186, 2012
Excess capital, operational disaster risk, and capital requirements for banksJournal articleMohamed Belhaj, Quantitative Finance, Volume 11, Issue 5, pp. 653-661, 2011

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