Abstract:We consider a setting where individuals interact in a network, each choosing actions which optimize utility as a function of neighbors' actions. A central authority aiming to maximize social welfare at equilibrium can intervene by paying some cost to shift individual incentives, and the optimal intervention can be computed using the spectral decomposition of the graph, yet this is infeasible in practice if the adjacency matrix is unknown. In this paper, we study the question of designing intervention strategie… Show more
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