Social Games: Matching and the Play of Finitely Repeated Games
We examine a new class of games, which we call social games, where players not only choose strategies but also choose with whom they play. A group of players who are dissatisfied with the play of their current partners can join together and play a new equilibrium. This imposes new refinements on equilibrium play, where play depends on the relative populations of players in different roles, among other things. We also examine finite repetitions of games where players may choose to rematch in any period. Some equilibria of fixed-player repeated games cannot be sustained as equilibria in a repeated social game. Conversely, the set of repeated matching (or social) equilibria also includes some plays that are not part of any subgame perfect equilibrium of the corresponding fixed-player repeated games. We explore existence under different equilibrium definitions, as well as the relationship to renegotiation-proof equilibrium. It is possible for repeated matching equilibria to be completely distinct from renegotiation-proof equilibria, and even to be Pareto inefficient.
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.:
- Rafael Rob & Huanxing Yang, 2006.
"Long Term Relationships as Safeguards,"
Levine's Working Paper Archive
618897000000001039, David K. Levine.
- Matthew O. Jackson & Alison Watts, 2000.
"On the Formation of Interaction Networks in Social Coordination Games,"
Econometric Society World Congress 2000 Contributed Papers
0778, Econometric Society.
- Jackson, Matthew O. & Watts, Alison, 2002. "On the formation of interaction networks in social coordination games," Games and Economic Behavior, Elsevier, vol. 41(2), pages 265-291, November.
- Buskens, Vincent, 2003. "Trust in triads: effects of exit, control, and learning," Games and Economic Behavior, Elsevier, vol. 42(2), pages 235-252, February.
- Roth,Alvin E. & Sotomayor,Marilda A. Oliveira, 1992.
Cambridge University Press, number 9780521437882, June.
- Roth, Alvin E. & Sotomayor, Marilda, 1992. "Two-sided matching," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 16, pages 485-541 Elsevier.
- Sanjeev Goyal & Fernando Vega-Redondo, 2003.
"Network Formation and Social Coordination,"
481, Queen Mary University of London, School of Economics and Finance.
- Corbae, Dean & Duffy, John, 2008.
"Experiments with network formation,"
Games and Economic Behavior,
Elsevier, vol. 64(1), pages 81-120, September.
- Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November.
- McKelvey, Richard D & Palfrey, Thomas R, 1992. "An Experimental Study of the Centipede Game," Econometrica, Econometric Society, vol. 60(4), pages 803-36, July.
- Anderhub, Vital & Güth, Werner & Engelmann, Dirk, 1999.
"An experimental study of the repeated trust game with incomplete information,"
SFB 373 Discussion Papers
1999,97, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Anderhub, Vital & Engelmann, Dirk & Guth, Werner, 2002. "An experimental study of the repeated trust game with incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 48(2), pages 197-216, June.
- Benoit, Jean-Pierre & Krishna, Vijay, 1991.
"Renegotiation in Finitely Repeated Games,"
91-34, C.V. Starr Center for Applied Economics, New York University.
- Farrell, Joseph & Maskin, Eric, 1987.
"Renegotiation in Repeated Games,"
Department of Economics, Working Paper Series
qt9wv3h5jb, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Watson, Joel, 1999. "Starting Small and Renegotiation," Journal of Economic Theory, Elsevier, vol. 85(1), pages 52-90, March.
- George J. Mailath & Larry Samuelson & Avner Shaked, 1997. "Endogenous Interactions," CARESS Working Papres endo-one, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- John W. Hatfield & Paul Milgrom, 2005. "Auctions, Matching and the Law of Aggregate Demand," Levine's Bibliography 122247000000000780, UCLA Department of Economics.
- repec:pit:wpaper:292 is not listed on IDEAS
- Crawford, Vincent P., 1991. "Comparative statics in matching markets," Journal of Economic Theory, Elsevier, vol. 54(2), pages 389-400, August.
- Rubinstein, Ariel & Wolinsky, Asher, 1985.
"Equilibrium in a Market with Sequential Bargaining,"
Econometric Society, vol. 53(5), pages 1133-50, September.
- Arial Rubinstein & Asher Wolinsky, 1985. "Equilibrium in a Market with Sequential Bargaining," Levine's Working Paper Archive 623, David K. Levine.
- John William Hatfield & Paul R. Milgrom, 2005.
"Matching with Contracts,"
American Economic Review,
American Economic Association, vol. 95(4), pages 913-935, September.
- Douglas Bernheim, B. & Ray, Debraj, 1989. "Collective dynamic consistency in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 295-326, December.
- Parikshit Ghosh & Debraj Ray, 1995.
"Cooperation in Community Interaction Without Information Flows,"
Boston University - Institute for Economic Development
64, Boston University, Institute for Economic Development.
- Parikshit Ghosh & Debraj Ray, 1996. "Cooperation in Community Interaction Without Information Flows," Review of Economic Studies, Oxford University Press, vol. 63(3), pages 491-519.
- Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
- Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982.
"Rational cooperation in the finitely repeated prisoners' dilemma,"
Journal of Economic Theory,
Elsevier, vol. 27(2), pages 245-252, August.
- David Kreps & Paul Milgrom & John Roberts & Bob Wilson, 2010. "Rational Cooperation in the Finitely Repeated Prisoners' Dilemma," Levine's Working Paper Archive 239, David K. Levine.
- Selten, Reinhard & Stoecker, Rolf, 1986. "End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 47-70, March.
- Matthew O. Jackson & Thomas R. Palfrey, 1998.
"Efficiency and Voluntary Implementation in Markets with Repeated Pairwise Bargaining,"
Econometric Society, vol. 66(6), pages 1353-1388, November.
- Matthew O. Jackson & Thomas R. Palfrey, 1997. "Efficiency and Voluntary Implementation in Markets with Repeated Pairwise Bargaining," Game Theory and Information 9711003, EconWPA.
- Bernheim, B. Douglas & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria II. Applications," Journal of Economic Theory, Elsevier, vol. 42(1), pages 13-29, June.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpga:0503003. 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: (EconWPA)
If references are entirely missing, you can add them using this form.