Network Interventions: Targeting Agents or Targeting Links?

Fuente: arXiv
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Autores principales: Dasaratha, Krishna, Shah, Anant
Formato: Preprint
Publicado: 2026
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author Dasaratha, Krishna
Shah, Anant
author_facet Dasaratha, Krishna
Shah, Anant
contents Consider a network game with linear best responses and spillovers between players, and let agents endogenously choose their links. A planner considers interventions to subsidize actions and/or links between players, aiming to maximize a welfare function depending on equilibrium actions. The structure of the optimal intervention depends on whether links provide non-negative intrinsic value to agents. When they do, it is optimal to focus only on subsidizing actions. When the intrinsic value of links is negative, we give conditions for including link subsidies to be optimal. This reverses the basic structure of the optimal intervention in settings with exogenous links.
format Preprint
id arxiv_https___arxiv_org_abs_2602_12897
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Network Interventions: Targeting Agents or Targeting Links?
Dasaratha, Krishna
Shah, Anant
Theoretical Economics
Consider a network game with linear best responses and spillovers between players, and let agents endogenously choose their links. A planner considers interventions to subsidize actions and/or links between players, aiming to maximize a welfare function depending on equilibrium actions. The structure of the optimal intervention depends on whether links provide non-negative intrinsic value to agents. When they do, it is optimal to focus only on subsidizing actions. When the intrinsic value of links is negative, we give conditions for including link subsidies to be optimal. This reverses the basic structure of the optimal intervention in settings with exogenous links.
title Network Interventions: Targeting Agents or Targeting Links?
topic Theoretical Economics
url https://arxiv.org/abs/2602.12897