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Categorization and correlation in a random-matching game

  • Azrieli, Yaron

We consider a random-matching model in which every agent has a categorization (partition) of his potential opponents. In equilibrium, the strategy of each player i is a best response to the distribution of strategies of his opponents (when they face i) in each category of his categorization. We provide equivalence theorems between distributions generated by equilibrium profiles and correlated equilibria of the underlying game.

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Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 46 (2010)
Issue (Month): 3 (May)
Pages: 303-310

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Handle: RePEc:eee:mateco:v:46:y:2010:i:3:p:303-310
Contact details of provider: Web page: http://www.elsevier.com/locate/jmateco

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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.
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  8. P. Young, 1999. "The Evolution of Conventions," Levine's Working Paper Archive 485, David K. Levine.
  9. Azrieli, Yaron, 2007. "Thinking categorically about others: A conjectural equilibrium approach," MPRA Paper 3843, University Library of Munich, Germany.
  10. Drew Fudenberg & David K. Levine, 1993. "Steady State Learning and Nash Equilibrium," Levine's Working Paper Archive 373, David K. Levine.
  11. Philippe Jehiel & Frederic Koessler, 2005. "Revisiting Games of Incomplete Information with Analogy-Based Expectations," THEMA Working Papers 2005-04, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  12. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
  13. Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1995. "Social Norms and Random Matching Games," Games and Economic Behavior, Elsevier, vol. 9(1), pages 79-109, April.
  14. Azrieli, Yaron, 2009. "Categorizing others in a large game," Games and Economic Behavior, Elsevier, vol. 67(2), pages 351-362, November.
  15. Yaron Azrieli & Ehud Lehrer, 2004. "Categorization generated by prototypes -- an axiomatic approach," Game Theory and Information 0405003, EconWPA.
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