A limit theorem for systems of social interactions
In this paper, we establish a convergence result for equilibria in systems of social interactions with many locally and globally interacting players. Assuming spacial homogeneity and that interactions between different agents are not too strong, we show that equilibria of systems with finitely many players converge to the unique equilibrium of a benchmark system with infinitely many agents. We prove convergence of individual actions and of average behavior. Our results also apply to a class of interaction games.
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- Stephen Morris & Hyun Song Shin, 2004.
"Heterogeneity and Uniqueness in Interaction Games,"
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7, Wisconsin Madison - Social Systems.
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NBER Working Papers
8053, National Bureau of Economic Research, Inc.
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- Stephen Morris, "undated".
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Penn CARESS Working Papers
1879bf5487d743edef7f32bb2, Penn Economics Department.
- Stephen Morris, 1997. "Interaction Games: A Unified Analysis of Incomplete Information, Local Interaction, and Random Matching," Research in Economics 97-08-072e, Santa Fe Institute.
- Stephen Morris, "undated". ""Interaction Games: A Unified Analysis of Incomplete Information, Local Interaction and Random Matching''," CARESS Working Papres 97-02, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
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