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"Interaction Games: A Unified Analysis of Incomplete Information, Local Interaction and Random Matching''

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  • Stephen Morris

Abstract

Incomplete information, local interaction, and random matching games all share a common structure. A type or player interacts with various subsets of the set of all types/players. A type/player's total payoff is additive in the payoffs from these various interactions. This paper describes a general class of interaction games and shows how each of these three classes of games can be understood as special cases. Techniques and results from the incomplete information literature are translated into this more general framework; as a by-product, it is possible to give a complete characterization of equilibria robust to incomplete information (in the sense of Kajii and Morris [1995]) in many player binary action coordination games. Only equilibria that are robust in this sense [1] can spread contagiously and [2] are uninvadable under best response dynamics in a local interaction system. A companion paper, Morris [1997], uses these techniques to characterize features of local interaction systems that allow contagion.

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Paper provided by University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences in its series CARESS Working Papres with number 97-02.

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Handle: RePEc:wop:pennca:97-02

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  1. Glen Ellison, 2010. "Learning, Local Interaction, and Coordination," Levine's Working Paper Archive 391, David K. Levine.
  2. Sugden, Robert, 1995. "The coexistence of conventions," Journal of Economic Behavior & Organization, Elsevier, vol. 28(2), pages 241-256, October.
  3. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, January.
  4. George J. Mailath & Larry Samuelson & Avner Shaked, . ""Correlated Equilibria and Local Interactions''," CARESS Working Papres 95-16, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  5. Stephen Morris, . ""Co-operation and Timing''," CARESS Working Papres 95-05, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  6. S. Morris & R. Rob & H. Shin, 2010. "p-dominance and Belief Potential," Levine's Working Paper Archive 505, David K. Levine.
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Cited by:
  1. Horst, Ulrich & Scheinkman, José A., 2009. "A limit theorem for systems of social interactions," Journal of Mathematical Economics, Elsevier, vol. 45(9-10), pages 609-623, September.
  2. Corbae, Dean & Duffy, John, 2008. "Experiments with network formation," Games and Economic Behavior, Elsevier, vol. 64(1), pages 81-120, September.
  3. Robin Mason & Akos Valentinyi, 2003. "Independence, Heterogeneity and Uniqueness in Interaction Games," IEHAS Discussion Papers 0303, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  4. Ianni, Antonella & Corradi, Valentina, 2000. "Consensus, contagion and clustering in a space-time model of public opinion formation," Discussion Paper Series In Economics And Econometrics 0009, Economics Division, School of Social Sciences, University of Southampton.
  5. Kets, W., 2008. "Beliefs in Network Games (Revised version of CentER DP 2007-46)," Discussion Paper 2008-5, Tilburg University, Center for Economic Research.

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