Heterogeneity and Uniqueness in Interaction Games
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.
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