4.6 Article

Nash Equilibria on (Un)Stable Networks

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Article Economics

Nash Equilibria on (Un)Stable Networks

Anton Badev

Summary: The model suggests that in social networks, the response of the friendship network to changes in tobacco price amplifies the intended effect of price changes on smoking among adolescents, racial desegregation of high schools can decrease the overall smoking prevalence, and peer effect complementarities are substantially stronger between smokers compared to between nonsmokers.

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