A note on local spillovers, convexity, and the strategic substitutes property in networks

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Theory and Decision 75 (2):293-304 (2013)
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Abstract

We provide existence results in a game with local spillovers where the payoff function satisfies both convexity and the strategic substitutes property. We show that there always exists a stable pairwise network in this game, and provide a condition which ensures the existence of pairwise equilibrium networks.

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10.1007/s11238-012-9328-1

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