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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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Bibliographic Info

Paper provided by Santa Fe Institute in its series Research in Economics with number 97-08-072e.

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Date of creation: Aug 1997
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Handle: RePEc:wop:safire:97-08-072e

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Related research

Keywords: Local interaction; game theory;

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References

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  1. George J. Mailath & Larry Samuelson & Avner Shaked, . "Correlated Equilibria and Local Interactions," CARESS Working Papres 97-6, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  2. S. Morris & R. Rob & H. Shin, 2010. "p-dominance and Belief Potential," Levine's Working Paper Archive 505, David K. Levine.
  3. Stephen Morris, . "Co-operation and Timing," Penn CARESS Working Papers b8d506ba7aa15345b602bb4eb, Penn Economics Department.
  4. Glen Ellison, 2010. "Learning, Local Interaction, and Coordination," Levine's Working Paper Archive 391, David K. Levine.
  5. 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, December.
  6. Sugden, Robert, 1995. "The coexistence of conventions," Journal of Economic Behavior & Organization, Elsevier, vol. 28(2), pages 241-256, October.
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Cited by:
  1. Dean Corbae & John Duffy, 2003. "Experiments with Network Formation," Levine's Working Paper Archive 666156000000000319, David K. Levine.
  2. Kets, W., 2008. "Beliefs in Network Games (Revised version of CentER DP 2007-46)," Discussion Paper 2008-5, Tilburg University, Center for Economic Research.
  3. Ulrich Horst & Jos´e A. Scheinkman, 2006. "A Limit Theorem for Systems of Social Interactions," Levine's Bibliography 321307000000000177, UCLA Department of Economics.
  4. Tim Hellmann & Mathias Staudigl, 2012. "Evolution of Social networks," Working Papers 470, Bielefeld University, Center for Mathematical Economics.
  5. Stephen Morris & Hyun Song Shin, 2004. "Heterogeneity and Uniqueness in Interaction Games," Yale School of Management Working Papers ysm341, Yale School of Management.
  6. 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.
  7. Kets, W., 2007. "Beliefs in Network Games (Replaced by CentER DP 2008-05)," Discussion Paper 2007-46, Tilburg University, Center for Economic Research.
  8. 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.
  9. Zamagni, Stefano, 2000. "Economic reductionism as a hindrance to the analysis of structural change: scattered notes," Structural Change and Economic Dynamics, Elsevier, vol. 11(1-2), pages 197-208, July.

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