Abstract

Interaction on hypergraphs generalizes interaction on graphs, also knows as pairwise local interaction. For games played in a hypergraph which are supermodular potential games, logit-perturbed best-response dnamics are studied. We find that the associated stochastically stable states form a sublattice of the lattice of Nash equilibra and derive comparative statistics results for the smallest and the largest stochastically stable state. In the special case of networking games, we obtain comparative statics results with respect to investment costs, for Nash equilibria of supermodular games as well as for Nash equilibria of submodular games.

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March 2008

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