Showing 1 - 10 of 1,159
This paper models the dynamic process through which a large society may succeed in building up its "social capital" by establishing a stable and dense pattern of interaction among its members. In the model, agents interact according to a collection of (idyosincratic) infinitely repeated...
Persistent link: https://www.econbiz.de/10005731257
Consider a large (continuum) population of finitely-lived agents organized in hierarchical levels.Every period, agents are matched to play a certain symmetric game. On the basis of the payoffsobtained, a certain p-fraction of those who performed best at each level are promoted upwords. Onthe...
Persistent link: https://www.econbiz.de/10005731273
This paper studies a stylized model of local interaction where agents choose from an ever increasing set of vertically ranked actions, e.g. technologies. The driving forces of the model are infrequent upward shifts ("updates"), followed by a rapid process of local imitation ("diffusion"). Our...
Persistent link: https://www.econbiz.de/10005731298
The paper studies an inter-temporal market context in which firms innovate, imitate, and compete in quantities and technological choices each period. Potential entrants enter if there are profitable opportunities; incumbent firms exit when they go bankrupt. The key aspect of the model is that...
Persistent link: https://www.econbiz.de/10005731315
We study a market for a homogeneous good in which firms adjust theirproduction decisions on the basis of imitation, learning from own experience, and local experimentation.For any fixed set of firms (more than one), long run behavior settles on a symmetric marginal-cost pricingequlibrium. When...
Persistent link: https://www.econbiz.de/10005731327
We study a setting in which individual players choose their partners as well as a mode of behavior in 2 x 2 anti-coordination games -- games where a player's best response is to behave differently than the opponent. We characterize the nature of equilibrium networks as well as study the effects...
Persistent link: https://www.econbiz.de/10005731335
In many economic and social contexts, individual players choose their partners and also decide on a mode of behavior in interactions with these partners. This paper develops a simple model to examine the interaction between partner choice and individual behavior in games of coordination. An...
Persistent link: https://www.econbiz.de/10005731399
In this paper, 1 propose a game-theoretic, intertemporal model of industrial competition in which active firms innovate, imitate, enter or exit as it is optimal in some prevailing (Markov Perfect) equilibrium. The main novel feature of the approach is that technological change is modelled as...
Persistent link: https://www.econbiz.de/10004972952
This paper investigates an evolutionary model of equilibrium selection in which agents are randomly paired every period to play some general symrnetric game of common interest (i.e., a game where some strategy profile Pareto- dominates al1 other configurations). Along the process, players tend...
Persistent link: https://www.econbiz.de/10004972953
Competition tends to promote efficient (equilibrium) behavior through the higher survival of the organizations (say firms) that adopt it. On the other hand, culture (understood as the "inherited" social pattern of behavior) may induce certain short-run inertias. This paper analyzes a dynamic...
Persistent link: https://www.econbiz.de/10005212592