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- W4289082891 abstract "In response to a change, individuals may choose to follow the responses of their friends or, alternatively, to change their friends. To model these decisions, consider a game where players choose their behaviors and friendships. In equilibrium, players internalize the need for consensus in forming friendships and choose their optimal strategies on subsets of k players - a form of bounded rationality. The k-player consensual dynamic delivers a probabilistic ranking of a game's equilibria, and, via a varying k, facilitates estimation of such games. Applying the model to adolescents' smoking suggests that: (a.) the response of the friendship network to changes in tobacco price amplifies the intended effect of price changes on smoking, (b.) racial desegregation of high-schools decreases the overall smoking prevalence, (c.) peer effect complementarities are substantially stronger between smokers compared to between non-smokers. (d.) the magnitude of the spillover effects from small scale policies targeting individuals' smoking choices are roughly double compared to the scale of these policies." @default.
- W4289082891 created "2022-08-01" @default.
- W4289082891 creator A5015456830 @default.
- W4289082891 date "2018-12-31" @default.
- W4289082891 modified "2023-09-23" @default.
- W4289082891 title "Nash Equilibria on (Un)Stable Networks" @default.
- W4289082891 doi "https://doi.org/10.48550/arxiv.1901.00373" @default.
- W4289082891 hasPublicationYear "2018" @default.
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