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On Local and Network Games

The knowledge constraints and transactions costs imposed by geographical distance, network connections and time conspire to justify local behavior as a good approximation for global rationality. We consider a class of games to illustrate this relationship and raise some questions as to what constitutes a satisfactory solution concept.

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File URL: http://cowles.econ.yale.edu/P/cd/d14a/d1414.pdf
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Paper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1414.

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Length: 23 pages
Date of creation: May 2003
Date of revision:
Handle: RePEc:cwl:cwldpp:1414
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Web page: http://cowles.econ.yale.edu/

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Order Information: Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA

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  1. Harsanyi, John C., 1994. "Games with Incomplete Information," Nobel Prize in Economics documents 1994-1, Nobel Prize Committee.
  2. Shubik, Martin, 1996. "Why equilibrium? A note on the noncooperative equilibria of some matrix games," Journal of Economic Behavior & Organization, Elsevier, vol. 29(3), pages 537-539, May.
  3. Stephen Morris, . "Contagion," Penn CARESS Working Papers ab67d13cfae3b5b56b7b9df3b, Penn Economics Department.
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