Affiliation:
1. School of Electrical and Computer Engineering, Cornell University
2. Department of Electrical Engineering and Computer Science, Massachusetts Institute of Technology
Abstract
In this paper, we present a unifying framework for analyzing equilibria and designing interventions for large network games sampled from a stochastic network formation process represented by a graphon. To this end, we introduce a new class of infinite population games, termed
graphon games, in which a continuum of heterogeneous agents interact according to a graphon, and we show that equilibria of graphon games can be used to approximate equilibria of large network games sampled from the graphon. This suggests a new approach for design of interventions and parameter inference based on the limiting infinite population graphon game. We show that, under some regularity assumptions, such approach enables the design of asymptotically optimal interventions via the solution of an optimization problem with much lower dimension than the one based on the entire network structure. We illustrate our framework on a synthetic data set and show that the graphon intervention can be computed efficiently and based solely on aggregated relational data.
Funder
Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung
Army Research Office
Multidisciplinary University Research Initiative
Subject
Economics and Econometrics
Reference58 articles.
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