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Games of social interactions with local and global externalities

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  • Le Breton, Michel
  • Weber, Shlomo

Abstract

In this paper we present a result on the existence of pure strategies Nash equilibrium which covers a large class of games with local and global social interactions. The result highlights common features of well-known games analyzed in the literature.

Suggested Citation

  • Le Breton, Michel & Weber, Shlomo, 2011. "Games of social interactions with local and global externalities," Economics Letters, Elsevier, vol. 111(1), pages 88-90, April.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:88-90
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    References listed on IDEAS

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    1. Nikolai Kukushkin, 2007. "Congestion games revisited," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(1), pages 57-83, September.
    2. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
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    6. Milchtaich, Igal, 1996. "Congestion Games with Player-Specific Payoff Functions," Games and Economic Behavior, Elsevier, vol. 13(1), pages 111-124, March.
    7. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
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    9. Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1997. "Equilibria in a Model with Partial Rivalry," Journal of Economic Theory, Elsevier, vol. 72(1), pages 225-237, January.
    10. Le Breton, Michel & Weber, Shlomo, 2009. "Existence of Pure Strategies Nash Equilibria in Social Interaction Games with Dyadic Externalities," CEPR Discussion Papers 7279, C.E.P.R. Discussion Papers.
    11. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2006. "Who's Who in Networks. Wanted: The Key Player," Econometrica, Econometric Society, vol. 74(5), pages 1403-1417, September.
    12. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
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    Cited by:

    1. Kukushkin, Nikolai, 2019. "Quasiseparable aggregation in games with common local utilities," MPRA Paper 93588, University Library of Munich, Germany.
    2. Blanchet, Adrien & Carlier, Guillaume & Nenna, Luca, 2017. "Computation of Cournot-Nash equilibria by entropic regularization," TSE Working Papers 17-785, Toulouse School of Economics (TSE).
    3. Kukushkin, Nikolai S., 2018. "A universal construction generating potential games," Games and Economic Behavior, Elsevier, vol. 108(C), pages 331-340.
    4. Panov, P., 2017. "Nash Equilibria in the Facility Location Problem with Externalities," Journal of the New Economic Association, New Economic Association, vol. 33(1), pages 28-42.
    5. Kukushkin, Nikolai S., 2017. "Strong Nash equilibrium in games with common and complementary local utilities," Journal of Mathematical Economics, Elsevier, vol. 68(C), pages 1-12.
    6. Subhadip Chakrabarti & Robert P Gilles & Lina Mallozzi, 2024. "A Generalised $\lambda$-Core Concept for Normal Form Games," Papers 2408.06086, arXiv.org.
    7. Kindler, A. & Solomon, S. & Stauffer, D., 2013. "Peer-to-peer and mass communication effect on opinion shifts," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(4), pages 785-796.
    8. Savvateev, Alexei & Weber, Shlomo & Musatov, Daniil, 2015. "Gale-Nikaido-Debreu and Milgrom-Shannon: Market Interactions with Endogenous Community Structures," CEPR Discussion Papers 10641, C.E.P.R. Discussion Papers.
    9. Adrien Blanchet & Guillaume Carlier, 2016. "Optimal Transport and Cournot-Nash Equilibria," Mathematics of Operations Research, INFORMS, vol. 41(1), pages 125-145, February.
    10. Musatov, Daniil & Savvateev, Alexei & Weber, Shlomo, 2016. "Gale–Nikaido–Debreu and Milgrom–Shannon: Communal interactions with endogenous community structures," Journal of Economic Theory, Elsevier, vol. 166(C), pages 282-303.

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