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.

Models, Economic development

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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.

Markov processes

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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.

Administration of General Economic Programs, Economic Statistics & Research, Economic conditions, Cooperation (Economics), Cooperation, Games

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