Heterogeneous Network Games: How Preferences Shape Equilibrium and Welfare
The article explores how people's different preferences in a network game can affect their decisions and outcomes. It looks at games where players' types influence their choices, and how this impacts equilibrium and welfare. Depending on the game type, players may either all choose the same action or have a mix of choices. By refining the equilibrium through mutations, the study found that certain stable configurations emerge. In most cases, networks end up in a frustrated hybrid state, which is the most common equilibrium.