Network Games

Many decisions that individuals make are influenced by the choices of their friends and acquaintances. For instance, the decision of an individual about whether or not to buy a new product, attend a meeting, commit a crime, find a job, exchange or trade, is often influenced by the decisions of his or her friends and acquaintances. Network games use game theory to analyze the interactions of individuals who are connected via a network and whose behavior is influenced by their neighbors, since the payoffs that individuals obtain from various decisions depend on the behavior of their neighbors. In particular, network games study the impact of the structure of the (complex) network on individuals' behavior.