Games on Multiplex Networks
American Economic Review · 2026 · Volume 116 · Issue 4
Abstract
We develop a simple multilayer network model in which agents allocate effort across layers with heterogeneous structures, subject to an aggregate effort constraint. Incentives are shaped by agents' network positions within each layer, and equilibrium behavior reflects both within- and cross-layer interactions. We analyze how shocks propagate through the network and characterize optimal targeting interventions. Our results show that effective policy design must account for effort allocation across layers. We also demonstrate that predictions from monolayer models can diverge sharply from those of multilayer models, underscoring the importance of accounting for network complexity in both empirical and policy analyses.
Keywords
Game Theory and Bargaining Theory: General, Positive Analysis of Policy Formulation and Implementation, Asymmetric and Private Information, Mechanism Design, Network Formation and Analysis: Theory, Public Goods, Economic Sociology, Economic Anthropology, Language, Social and Economic Stratification
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