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Peer-Confirming Equilibrium

delete2019-01-01
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PRE
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E
Elliot Lipnowski *
E
Evan Sadler
DOI:10.3982/ECTA15597delete
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摘要

摘要

En 中文
We can often predict the behavior of those closest to us more accurately than that of complete strangers, yet we routinely engage in strategic situations with both: our social network impacts our strategic knowledge. Peer-confirming equilibrium describes the behavioral consequences of this intuition in a noncooperative game. We augment a game with a network to represent strategic information: if two players are linked in the network, they have correct conjectures about each others' strategies. In peer-confirming equilibrium, there is common belief that players (i) behave rationally and (ii) correctly anticipate neighbors' play. In simultaneous-move games, adding links to the network always restricts the set of outcomes. In dynamic games, the outcome set may vary non-monotonically with the network because the actions of well-connected players help poorly-connected players coordinate. This solution concept provides a useful language for studying public good provision, highlights a new channel through which central individuals facilitate coordination, and delineates possible sources of miscoordination in protests and coups.
Keyword:
Networks
strategic uncertainty
conjectural equilibrium
forward induction
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Econometrica 封面图
Econometrica
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7.1
论文数:
3.0K
被引数:
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机构

C
Columbia University
学者数:
7.1W
论文数: 6.4W
被引数: 263
U
university of chicago
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4.5W
论文数: 3.7W
被引数: 80
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