Exploiting social influence in networks

• 成果类型: Article
• 署名作者: Nora, Vladyslav; Winter, Eyal
• 署名单位: Nazarbayev University; Lancaster University; Hebrew University of Jerusalem; Hebrew University of Jerusalem
• 刊物名称: THEORETICAL ECONOMICS
• ISSN/ISSBN: 1933-6837
• DOI: 10.3982/TE5068
• 发表日期: 2024-01-01
• 页码: 1-27
• 关键词: Social networks; unique implementation; strategic complementarities; split graphs; C72; D82

摘要

We study binary action network games with strategic complementarities. An agent acts if the aggregate social influence of her friends exceeds a transfer levied on the agent by a principal. The principal seeks to maximize her revenue while inducing everyone to act in a unique equilibrium. We characterize optimal transfers showing that agents who are more popular than their friends receive preferential treatment. Our main result is that under mild conditions complete core-periphery networks deliver the highest revenue to the principal. Furthermore, we show that the revenue is higher in networks where links are allocated unequally across agents. Hence, the principal benefits from creating influentials by linking well-connected hubs to less popular periphery.