Local Interaction Games with Random Matching

  • Date: 03/22/2007

Ulrich Horst (Humboldt University Berlin)


University of British Columbia


We state conditions for existence and uniqueness of equilibria in
evolutionary models with an infinity of locally and globally
interacting agents. Agents face repeated discrete choice problems.
Their utility depends on the actions of some designated neighbors and
the average choice throughout the whole population. We show that the
dynamics on the level of aggregate behavior can be described by a
deterministic measure-valued integral equation. If some form of
positive complementarities prevails we establish convergence and
ergodicity results for aggregate activities. We apply our convergence
results to study a glass of population games with random matching.

Other Information: 

MITACS Math Finance Seminar 2007