Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168017
Authors: 
Jimenez-Martinez, Antonio
Year of Publication: 
2017
Citation: 
[Journal:] Games [ISSN:] 2073-4336 [Volume:] 8 [Year:] 2017 [Issue:] 1 [Pages:] 1-14
Abstract: 
This paper considers a population of agents that are engaged in a listening network. The agents wish to match their actions to the true value of some uncertain (exogenous) parameter and to the actions of the other agents. Each agent begins with some initial information about the parameter and, in addition, is able to receive further information from their neighbors in the network. I derive a closed expression for the (interim) social welfare loss that depends on the initial information structure and on the possible pieces of information that can be gathered under the network. Then, I explore how changes in the network may affect social welfare for extreme levels of complementarity in the agents' actions. When the level of complementarity is very high, efficiency is achieved regardless of the network structure. For very low levels of complementarity in actions, efficiency can be either associated to more sparse or denser networks, depending on the size of the induced informative gains. The implications of this paper are relevant in security environments where agents are naturally interpreted as analysts who try to forecast the value of a parameter that describes a threat to security.
Subjects: 
networks
information aggregation
beauty-contests
strategic complementarity
social welfare
JEL: 
C72
D83
D84
D85
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Appears in Collections:

Files in This Item:
File
Size
272.11 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.