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Rationalizability in games with a continuum of players

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  • Jara-Moroni, Pedro

Abstract

The concept of rationalizability has been used in the last fifteen years to study stability of equilibria in models with a continuum of agents such as competitive markets, macroeconomic dynamics and currency attacks. However, rationalizability has been formally defined in general settings only for games with a finite number of players. We propose an exploration of rationalizability in the context of games with a continuum of players. We deal with a special class of these games, in which payoff of each player depends only on his own strategy and on an aggregate value: the state of the game, which is obtained from the complete action profile. We define the sets of point-rationalizable states and rationalizable states. For the case of continuous payoffs and compact strategy sets, we characterize these sets and prove their convexity and compactness. We provide as well results on the equivalence of point- and standard-rationalizability.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 75 (2012)
Issue (Month): 2 ()
Pages: 668-684

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Handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:668-684

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Web page: http://www.elsevier.com/locate/inca/622836

Related research

Keywords: Rationalizable strategies; Non-atomic games; Expectational coordination; Rational expectations; Eductive stability; Strong rationality;

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Citations

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Cited by:
  1. Roger Guesnerie & Pedro Jara-Moroni, 2007. "Expectational coordination in a class of economic models: Strategic substitutabilities versus strategic complementarities," Working Papers halshs-00587837, HAL.
  2. Haomiao Yu, 2014. "Rationalizability in large games," Economic Theory, Springer, vol. 55(2), pages 457-479, February.
  3. Roger Guesnerie & Pedro Jara-Moroni, 2011. "Expectational coordination in simple economic contexts," Economic Theory, Springer, vol. 47(2), pages 205-246, June.
  4. Roger Guesnerie & Pedro Jara-Moroni, 2009. "Expectational coordination in simple economic contexts: concepts and analysis with emphasis on strategic substitutabilities," Working Papers halshs-00574957, HAL.
  5. Hector Calvo Pardo, 2005. "Are the antiglobalists right? Gains-from-trade without a walrasian auctioneer," PSE Working Papers halshs-00590718, HAL.
  6. Roger Guesnerie & Pedro Jara-Moroni, 2009. "Expectational coordination in simple economic contexts: concepts and analysis with emphasis on strategic substitutabilities," PSE Working Papers halshs-00574957, HAL.
  7. Roger Guesnerie & Pedro Jara-Moroni, 2007. "Expectational coordination in a class of economic models: Strategic substitutabilities versus strategic complementarities," PSE Working Papers halshs-00587837, HAL.

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