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Dynamic Systems of Social Interactions

  • Ulrich Horst

We state conditions for existence and uniqueness of equilibria in evolu- tionary models with an infinity of locally and globally interacting agents. Agents face repeated discrete choice problems. Their utility depends on the actions of some designated neighbors and the average choice throughout the whole population. We show that the dynamics on the level of aggregate be- havior can be described by a deterministic measure-valued integral equation. If some form of positive complementarities prevails we establish convergence and ergodicity results for aggregate activities. We apply our convergence re- sults to study a class of population games with random matching.

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Paper provided by Sonderforschungsbereich 649, Humboldt University, Berlin, Germany in its series SFB 649 Discussion Papers with number SFB649DP2010-012.

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Length: 24 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:hum:wpaper:sfb649dp2010-012
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  19. Horst, Ulrich, 2001. "Financial price fluctuations in a stock market model with many interacting agents," SFB 373 Discussion Papers 2001,36, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  20. Kosfeld, M., 1999. "Stochastic Strategy Adjustment in Coordination Games," Research Memorandum 775, Tilburg University, School of Economics and Management.
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