A Striving for Social Status
نویسندگان
چکیده
In this paper, we consider a network of agents producing a positional good; an agent’s utility for the good is a function of both his intrinsic value for the good and his status, or production level relative to the production levels of his neighbors. We demonstrate that the set of Nash equilibria of our game form a complete lattice, and that natural best-reply dynamics from certain initial configurations converge to either the minimum or maximum elements of the lattice. We then study the effects of status and network structure on the total production of the good and the social welfare. We find that production increases and welfare decreases with status effects. Network structure, on the other hand, can have arbitrary impacts on both production and welfare.
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