Econometrica: Sep 2015, Volume 83, Issue 5
Strategic Learning and the Topology of Social Networks
Elchanan Mossel, Allan Sly, Omer TamuzWe consider a group of strategic agents who must each repeatedly take one of two possible actions. They learn which of the two actions is preferable from initial private signals and by observing the actions of their neighbors in a social network.
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Supplement to "Strategic Learning and the Topology of Social Networks"
This appendix gives two examples showing that the assumptions of bounded out-degree and L-connectedness are crucial. Our approach in constructing equilibria will be to prescribe the initial moves of the agents and then extend this to an equilibrium strategy profile.