Events

Prof. Junjie Zhou
Professor of Economics
School of Economics and Management
Tsinghua University

ABSTRACT

We provide a simple network model of multiple layers (referred to as multiplexity), an important but understudied topic in the network literature. On any layer, agents’ incentives are influenced by their within-layer social ties. Facing aggregate effort constraint, agents optimize across layers, which may have heterogeneous network structures. We first characterize the equilibrium of this game and determine the importance of both within and between-layer interactions in terms of shock propagations. Then, we identify the optimal targeting interventions with multiplexity. Applications to multiple club goods, markets with neighborhood effects, and management of multiple social relationships are provided.