All-purpose minimal sufficient networks in the threshold game
This paper considers a multi-player stag hunt where players are either available for action or not, and where players additionally differ in their degree of conservatism, i.e. in the threshold of players that need to act along with them before they see benefits in collective action. Minimal sufficient networks, which depending on their thresholds allow players to achieve just enough interactive knowledge about each otherâ€™s availability to act, take the form of hierarchies of cliques (Chwe, RES, 2000). We show that any typical threshold game has a plethora of such networks, so that players seem to face a large degree of strategic uncertainty over which network to use. The plethora of networks includes cases where the structure of the network infects players into acting more conservatively than is reflected in their thresholds. An extreme case of this is the core-periphery network, where each player acts as conservatively as the most conservative player in the population. Because of this feature, the core-periphery network is minimal sufficient for all possible populations. Players can thus solve the strategic uncertainty arising from the multiplicity of minimal sufficient networks by using the all-purpose core-periphery network.
|Date of creation:||Apr 2009|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 80125, NL-3508 TC Utrecht|
Phone: +31 30 253 9800
Fax: +31 30 253 7373
Web page: http://www.uu.nl/EN/faculties/leg/organisation/schools/schoolofeconomicsuse/Pages/default.aspx
More information through EDIRC
|Order Information:|| Email: |
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.:
- Jackson, Matthew O. & Wolinsky, Asher, 1996.
"A Strategic Model of Social and Economic Networks,"
Journal of Economic Theory,
Elsevier, vol. 71(1), pages 44-74, October.
- Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Michael Suk-Young Chwe, 2000. "Communication and Coordination in Social Networks," Review of Economic Studies, Oxford University Press, vol. 67(1), pages 1-16.
- Rubinstein, Ariel, 1989. "The Electronic Mail Game: Strategic Behavior under "Almost Common Knowledge."," American Economic Review, American Economic Association, vol. 79(3), pages 385-91, June.
- Russell Cooper & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1992.
"Communication in Coordination Games,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(2), pages 739-771.
- COOPER, R. & DEJONG, D.V. & FORSYTHE, R. & Tom Ross, 1989. "Communication In Coordination Games," Carleton Industrial Organization Research Unit (CIORU) 89-07, Carleton University, Department of Economics.
- Venkatesh Bala & Sanjeev Goyal, 1998. "Learning from Neighbours," Review of Economic Studies, Oxford University Press, vol. 65(3), pages 595-621.
- John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, March.
- David Kreps & Robert Wilson, 1999.
"Reputation and Imperfect Information,"
Levine's Working Paper Archive
238, David K. Levine.
- Corbae, Dean & Duffy, John, 2008.
"Experiments with network formation,"
Games and Economic Behavior,
Elsevier, vol. 64(1), pages 81-120, September.
- Frederic KOESSLER, 2000. "Common Knowledge and Interactive Behaviors: A Survey," Working Papers of BETA 2000-07, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- John Geanakoplos, 1992. "Common Knowledge," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 53-82, Fall.
When requesting a correction, please mention this item's handle: RePEc:use:tkiwps:0907. 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: (Marina Muilwijk)
If references are entirely missing, you can add them using this form.