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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- William A. Brock & Steven N. Durlauf, 2001.
"Discrete Choice with Social Interactions,"
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Oxford University Press, vol. 68(2), pages 235-260.
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1914, Harvard - Institute of Economic Research.
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SFB 373 Discussion Papers
2001,21, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
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Yale School of Management Working Papers
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CARESS Working Papres
97-02, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Stephen Morris, . "Interaction Games: A Unified Analysis of Incomplete Information, Local Interaction and Random Matching," Penn CARESS Working Papers 1879bf5487d743edef7f32bb2, Penn Economics Department.
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Levine's Working Paper Archive
506439000000000119, David K. Levine.
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