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Congestion, Coordination and Matching

  • Marja-Liisa Halko

    ()

    (Department of Accounting and Finance, Helsinki School of Economics)

  • Hannu Salonen

    ()

    (Department of Economics, University of Turku)

We study the existence of pure strategy Nash equilibria in finite congestion and coordination games. Player set is divided into two disjoint groups, called men and women. A man choosing an action a is better off if the number of other men choosing a decreases, or if the number of women choosing a increases. Analogously, a woman becomes better off if more men or fewer women choose the same action as she does. Existence proofs are constructive: we build simple ``best reply'' algorithms that converge to an equilibrium.

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File URL: http://www.ace-economics.fi/kuvat/dp%20028.pdf
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Paper provided by Aboa Centre for Economics in its series Discussion Papers with number 28.

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Length: 24
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:tkk:dpaper:dp28
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  1. Thomas Quint & Martin Shubik, 1994. "A Model of Migration," Cowles Foundation Discussion Papers 1088, Cowles Foundation for Research in Economics, Yale University.
  2. Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1997. "Equilibria in a Model with Partial Rivalry," Journal of Economic Theory, Elsevier, vol. 72(1), pages 225-237, January.
  3. Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1997. "Pure Strategy Nash Equilibrium in a Group Formation Game with Positive Externalities," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 161-182, October.
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