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Games of social interactions with local and global externalities

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  • Le Breton, Michel
  • Weber, Shlomo
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    Abstract

    In this paper we present a result on the existence of pure strategies Nash equilibrium which covers a large class of games with local and global social interactions. The result highlights common features of well-known games analyzed in the literature.

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    File URL: http://www.sciencedirect.com/science/article/B6V84-51XY01N-9/2/e7578d3330ede42563971fa6c7eabe38
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    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 111 (2011)
    Issue (Month): 1 (April)
    Pages: 88-90

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    Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:88-90

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    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Social interactions Conformity Externalities Potential function;

    References

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    1. Milchtaich, Igal, 1996. "Congestion Games with Player-Specific Payoff Functions," Games and Economic Behavior, Elsevier, vol. 13(1), pages 111-124, March.
    2. Ballester, Coralio & Calvó-Armengol, Antoni & Zenou, Yves, 2005. "Who’s Who in Networks. Wanted: The Key Player," CEPR Discussion Papers 5329, C.E.P.R. Discussion Papers.
    3. Nikolai S. Kukushkin, 2004. "Congestion Games Revisited," Game Theory and Information 0412010, EconWPA, revised 02 Feb 2006.
    4. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
    5. Edward L. Glaeser & Bruce I. Sacerdote & Jose A. Scheinkman, 2002. "The Social Multiplier," NBER Working Papers 9153, National Bureau of Economic Research, Inc.
    6. Le Breton, Michel & Weber, Shlomo, 2009. "Existence of Pure Strategies Nash Equilibria in Social Interaction Games with Dyadic Externalities," CEPR Discussion Papers 7279, C.E.P.R. Discussion Papers.
    7. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-77, October.
    8. R. Florian & S. Galam, 2000. "Optimizing conflicts in the formation of strategic alliances," The European Physical Journal B - Condensed Matter and Complex Systems, Springer, vol. 16(1), pages 189-194, July.
    9. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
    10. Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1997. "Equilibria in a Model with Partial Rivalry," Journal of Economic Theory, Elsevier, vol. 72(1), pages 225-237, January.
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    Cited by:
    1. Kindler, A. & Solomon, S. & Stauffer, D., 2013. "Peer-to-peer and mass communication effect on opinion shifts," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(4), pages 785-796.

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