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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- Brock,W.A. & Durlauf,S.N., 2000.
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7, Wisconsin Madison - Social Systems.
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- Edward L. Glaeser & Jose Scheinkman, 2000.
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- Horst, Ulrich & Scheinkman, Jose A., 2006.
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- U. Horst & Jose A. Scheinkman, 2010. "Equilibria in Systems of Social Interactions," Levine's Working Paper Archive 506439000000000119, David K. Levine.
- J. Scheinkman & U. Horst, 2003. "Equilibria in Systems of Social Interactions," Princeton Economic Theory Working Papers d5a39039d26e0b08775b915bf, David K. Levine.
- 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," Penn CARESS Working Papers 1879bf5487d743edef7f32bb2, Penn Economics Department.
- 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.
- Stephen Morris & Hyun Song Shin, 2003.
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Cowles Foundation Discussion Papers
1402, Cowles Foundation for Research in Economics, Yale University.
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