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Dynamic Systems with a Continuum of Randomly Matched Agents

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  • Alos-Ferrer, C.

Abstract

many models postulate a continuum of agents of finitely many different types who are repeatedly randomly matched in pairs to conform certain activities (e.g. play a game) which may in turn make their types change. The random matching process is usually left unspecified , and some law of large Numbers is informally invoked to justify a deterministic approximation of the resulting stochastic system. Nevertheless, it is well-known that such "law of large numbers" may not hold in the framework. This work shows that there exist random matching processes over a continuum of agents satisfying properties which are sufficient to simplify the analysis of the stochastic system.

Suggested Citation

  • Alos-Ferrer, C., 1998. "Dynamic Systems with a Continuum of Randomly Matched Agents," Papers 9801, Washington St. Louis - School of Business and Political Economy.
    • Handle: RePEc:fth:waslbp:9801
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    References listed on IDEAS

    as
    1. Judd, Kenneth L., 1985. "The law of large numbers with a continuum of IID random variables," Journal of Economic Theory, Elsevier, vol. 35(1), pages 19-25, February.
    2. Matsui Akihiko & Matsuyama Kiminori, 1995. "An Approach to Equilibrium Selection," Journal of Economic Theory, Elsevier, vol. 65(2), pages 415-434, April.
    3. Gilboa, Itzhak & Matsui, Akihiko, 1992. "A model of random matching," Journal of Mathematical Economics, Elsevier, vol. 21(2), pages 185-197.
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    8. Peters, Michael, 1991. "Ex Ante Price Offers in Matching Games Non-steady States," Econometrica, Econometric Society, vol. 59(5), pages 1425-1454, September.
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    More about this item

    Keywords

    STOCHASTIC MODELS ; RANDOM ANALYSIS;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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