Large games and the law of large numbers
AbstractThis paper introduces discrete large games where the set of players is a countable dense 'grid' with a finitely additive distribution. In these games any function from player names to mixed actions is a legitimate strategy profile. No extraneous continuity or measurability conditions are assumed. Randomness can be modeled explicitly and an exact law of large numbers holds. Equilibria enjoy a strong purification property: every realization of every mixed strategy equilibrium is a pure strategy equilibrium almost surely. Every continuum-player game has a discrete large game representation that preserves the original payoffs, strategy profiles and equilibria. It is argued that strategy profiles in continuum-player games have an ambiguous meaning because measurability requirements force the smoothing out of individual variations. These variations have clear strategic meaning in finite-player games and can be expressed in discrete large games, but not when the set of players is the continuum.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 64 (2008)
Issue (Month): 1 (September)
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Web page: http://www.elsevier.com/locate/inca/622836
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