Strategic behavior in non-atomic games
In order to remedy the possible loss of strategic interaction in non-atomic games with a societal choice, this study proposes a refinement of Nash equilibrium, strategic equilibrium. Given a non-atomic game, its perturbed game is one in which every player believes that he alone has a small, but positive, impact on the societal choice; and a distribution is a strategic equilibrium if it is a limit point of a sequence of Nash equilibrium distributions of games in which each player's belief about his impact on the societal choice goes to zero. After proving the existence of strategic equilibria, we show that all of them must be Nash. Moreover, it is displayed that in many economic applications, the set of strategic equilibria coincides with that of Nash equilibria of large finite games.
|Date of creation:||13 Dec 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carmona, Guilherme, 2008. "Large games with countable characteristics," Journal of Mathematical Economics, Elsevier, vol. 44(3-4), pages 344-347, February.
- V. V. Chari & Patrick J Kehoe, 1998.
Levine's Working Paper Archive
600, David K. Levine.
- Chari, V V & Kehoe, Patrick J, 1993.
"Sustainable Plans and Mutual Default,"
Review of Economic Studies,
Wiley Blackwell, vol. 60(1), pages 175-95, January.
- Carmona, Guilherme, 2004.
"On the Existence of Pure Strategy Nash Equilibria in Large Games,"
FEUNL Working Paper Series
wp465, Universidade Nova de Lisboa, Faculdade de Economia.
- Carmona, Guilherme, 2006. "On the Existence of Pure Strategy Nash Equilibria in Large Games," FEUNL Working Paper Series wp487, Universidade Nova de Lisboa, Faculdade de Economia.
- Guilherme Carmona, 2004. "On the Existence of Pure Strategy Nash Equilibria in Large Games," Game Theory and Information 0412008, EconWPA.
- Aumann, Robert & Brandenburger, Adam, 1995. "Epistemic Conditions for Nash Equilibrium," Econometrica, Econometric Society, vol. 63(5), pages 1161-80, September.
- Levine, David K & Pesendorfer, Wolfgang, 1995.
"When Are Agents Negligible?,"
American Economic Review,
American Economic Association, vol. 85(5), pages 1160-70, December.
- Wolfgang Pesendorfer & David Levine, 1992. "When are Agents Negligible?," Discussion Papers 1018, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- David K. Levine & Wolfgang Pesendorfer, 1995. "When Are Agents Negligible?," Levine's Working Paper Archive 96, David K. Levine.
- Chari V. V. & Kehoe Patrick J., 1993.
"Sustainable Plans and Debt,"
Journal of Economic Theory,
Elsevier, vol. 61(2), pages 230-261, December.
- van Damme, E.E.C. & Kühn, H. & Harsanyi, J. & Selten, R. & Weibull, J. & Nash Jr., J. & Hammerstein, P., 1996. "The work of John Nash in game theory," Other publications TiSEM f84995ec-5162-4438-8ca3-8, Tilburg University, School of Economics and Management.
- Sabourian, Hamid, 1990. "Anonymous repeated games with a large number of players and random outcomes," Journal of Economic Theory, Elsevier, vol. 51(1), pages 92-110, June.
- Podczeck, Konrad, 2008. "On the convexity and compactness of the integral of a Banach space valued correspondence," Journal of Mathematical Economics, Elsevier, vol. 44(7-8), pages 836-852, July.
- M Ali Khan & Kali P Rath & Yeneng Sun, 1994.
"On the Existence of Pure Strategy Equilibria in Games with a Continuum of Players,"
Economics Working Paper Archive
381, The Johns Hopkins University,Department of Economics, revised Feb 1997.
- Khan, M. Ali & Rath, Kali P. & Sun, Yeneng, 1997. "On the Existence of Pure Strategy Equilibria in Games with a Continuum of Players," Journal of Economic Theory, Elsevier, vol. 76(1), pages 13-46, September.
- Guilherme Carmona, 2009. "A remark on the measurability of large games," Economic Theory, Springer, vol. 39(3), pages 491-494, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:35549. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.