Large strategic dynamic interactions
Ehud Kalai and
Journal of Economic Theory, 2018, vol. 178, issue C, 59-81
The paper presents a model of large strategic dynamic interactions in an environment with uncertain fundamentals. The interaction is among a large finite group of interdependent players, diversified in their preferences and information. We study an imagined-continuum equilibrium, a behavioral hybrid of games with a continuum of players and finite games. This equilibrium enables simple Bayesian reasoning and admits natural Markov-perfect equilibria. In addition, we establish bounds on the probabilistic discrepancies between players' beliefs that are derived from the continuum model and the actual finite reality.
Keywords: Anonymous games; Nash equilibrium; Repeated games; Large games; Bayesian equilibrium; Markov equilibrium (search for similar items in EconPapers)
JEL-codes: C72 C73 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:178:y:2018:i:c:p:59-81
Access Statistics for this article
Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell
More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().