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The Economy as an Evolving Complex System, IIICurrent Perspectives and Future Directions$
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Lawrence E. Blume and Steven N. Durlauf

Print publication date: 2005

Print ISBN-13: 9780195162592

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195162592.001.0001

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Heterogeneity and Uniqueness in Interaction Games

Heterogeneity and Uniqueness in Interaction Games

Chapter:
(p.207) Heterogeneity and Uniqueness in Interaction Games
Source:
The Economy as an Evolving Complex System, III
Author(s):

Stephen Morris

Hyun Song Shin

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195162592.003.0009

This chapter observes that models of social interaction are a special case of a more general game-theoretic model wherein players respond to the distribution of their opponents' actions. This general class includes local interaction games, random matching games, and games of incomplete information. The chapter uses this analogy to explore important analytical issues common to all three frameworks, including the uniqueness of Nash equilibrium and multiplier effects in the presence of strategic complementarities.

Keywords:   social interaction, game-theoretic model, general class, Nash equilibrium, multiplier effects

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