When are agents negligible?
Article Abstract:
Equilibria in a dynamic context can be markedly different in a model with a finite number of agents than in a model with a continuum of agents. To examine this paradox, it is contextualized in a simple strategic setting where it is a general phenomenon. The paradox vanishes when there is a noisy observation of the actions of the players. The aggregate level of noise does not fade in a very fast manner as the number of players is increased. A discontinuity in extensive-form games is possible when shifting from the finite player to continuum limit.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1995
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Trembling invisible hand equilibrium
Article Abstract:
An analysis of a market with conditions influenced by an invisible hand equilibrium is presented. The analysis focuses on an economic setting where trading ownership in a finite collection of long-lived assets conditions intertemporal and interstate trade and where the market's invisible hand exhibits imperfection in meeting all agents' demands. It is shown that the solution to a finite dimensional fixed point problem generates an approximationof Markov equilibrium conditions.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1993
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Evolution and information in a gift-giving game
Article Abstract:
Research into the stochastic stability of a process of learning and evolution in a gift-giving game is presented. It is demonstrated that for some parameter values cooperative play becomes the unique long-run stochastically stable distribution.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2001
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