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Social Conformity And Bounded Rationality In Arbitrary Games With Incomplete Information : Some First Results

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Author Info
Cartwright, Edward (Department of Economics, University of Warwick)
Wooders, Myrna (Department of Economics, University of Warwick)

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Abstract

It has been frequently observed, in both economics and psychology, that individuals tend to conform to the choices of other individuals with whom they identify. Can such conformity be consistent with self interested behaviour? To address this question we use the framework of games with incomplete information. For a given game we first put a lower bound on * so that there exists a Nash *-equilibrium in pure strategies consistent with conformity. We also introduce a new concept of conformity that allows players to conform and yet perform different actions. This is achieved by the endogeneous assignment of roles to players and by allowing actions to be conditional on roles. We conclude by relating our research to some experimental literature.

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File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/publications/twerp672-revised.pdf
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Publisher Info
Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 672.

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Length: 31 pages
Date of creation: 2003
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Handle: RePEc:wrk:warwec:672

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Conley, John P. & Wooders, Myrna H., 2001. "Tiebout Economies with Differential Genetic Types and Endogenously Chosen Crowding Characteristics," Journal of Economic Theory, Elsevier, vol. 98(2), pages 261-294, June. [Downloadable!] (restricted)
  2. Wooders, Myrna & Edward Cartwright & Selten, Reinhard, 2002. "Social Conformity And Equilibrium In Pure Strategies In Games With Many Players," The Warwick Economics Research Paper Series (TWERPS) 636, University of Warwick, Department of Economics. [Downloadable!]
  3. Alexander Kovalenkov & Myrna H. Wooders, 1998. "Approximate cores of games and economies with clubs," Working Papers mwooders-00-01, University of Toronto, Department of Economics. [Downloadable!]
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