In a linear-quadratic model with network spillovers, the continuum-limit contract approximates the finite-N optimum with error of order 1/N and remains stable to perturbations of the interaction function.
Graphon Games
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Contracting a crowd of heterogeneous agents
In a linear-quadratic model with network spillovers, the continuum-limit contract approximates the finite-N optimum with error of order 1/N and remains stable to perturbations of the interaction function.