Economic Theory Seminar Series - Yves Zenou (Monash)

Title: Games on Multiplex Networks*

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 the network position within each layer, and equilibrium behavior reflects both within- and between-layer interactions. We analyze how shocks propagate through the network and identify optimal targeting interventions. Our results highlight that effective policy design must account for spillovers across layers. We also show that predictions from monolayer models can diverge sharply from those of multilayer models, underscoring the importance of accounting for network complexity in empirical and policy analyses.