Abstract:
The game equilibrium in network is under consideration; in each node of this network economy is described by the simple two-period Romer model of endogenous growth with production and knowledge externalities. The sum of knowledge levels in the neighbor nodes causes an externality in the production of each node of network. The adjusting dynamics described by differential equations systems is under consideration. For the arbitrary full networks and for triangle — the full network with three types of agents who possess different productivities, — we study which equilibria are possible, and which of these equilibria are dynamically stable under different combinations of parameters of the game.
Keywords:network, game in the network, Nash equilibrium, externality, adjusting dynamics, dynamically stability, productivity, triangle, heterogeneous agents.