Some First Results for Noncooperative Pregames: Social Conformity and Equilibrium in Pure Strategies

We introduce the framework of noncooperative pregames and demonstrate that for all games with sufficiently many players, there exists approximate (E) Nash equilibria in pure strategies. Moreover, an equilibrium can be selected with the property that most players choose the same strategies as all other players with similar attributes. More precisely, there is an integer K, depending on E but not on the number of players so that any sufficiently large society can be partitioned into fewer than K groups, or cultures, consisting of similar players, and all players in the same group play the same pure strategy. In ongoing research we are extending the model to cover a broader class of situations, including incomplete information.

[1]  Myrna Holtz Wooders,et al.  Epsilon Cores of Games with Limited Side Payments: Nonemptiness and Equal Treatment , 2001, Games Econ. Behav..

[2]  Ehud Kalai,et al.  Private Information in Large Games , 2000 .

[3]  A. Araujo,et al.  Equilibrium with Default and Endogenous Collateral , 2000 .

[4]  Mário R. Páscoa,et al.  Nash equilibrium and the law of large numbers , 1998, Int. J. Game Theory.

[5]  M. Ali Khan,et al.  On the Existence of Pure Strategy Equilibria in Games with a Continuum of Players , 1997 .

[6]  M. Wooders,et al.  An Explicit Bound on epsilon for Non-Emptiness of the epsilon-Core of an Arbitrary Game with Side Payments , 1997 .

[7]  M. Wooders EQUIVALENCE OF GAMES AND MARKETS , 1994 .

[8]  Mario Rui Pascoa,et al.  Approximate equilibrium in pure strategies for non-atomic games , 1993 .

[9]  M. Ali Khan,et al.  On Cournot-Nash equilibrium distributions for games with a nonmetrizable action space and upper semi-continuous payoffs , 1989 .

[10]  A. Mas-Colell On a theorem of Schmeidler , 1984 .

[11]  M. Wooders,et al.  Approximate Cores of Large Games , 1984 .

[12]  Roy Radner,et al.  Approximate Purification of Mixed Strategies , 1983, Math. Oper. Res..

[13]  Myrna Holtz Wooders,et al.  The epsilon core of a large replica game , 1983 .

[14]  S. Rashid Equilibrium points of non-atomic games : Asymptotic results , 1982 .

[15]  Jerry R. Green,et al.  Mathematical Analysis and Convexity with Applications to Economics , 1981 .

[16]  H. Föllmer Random economies with many interacting agents , 1974 .

[17]  W. Hildenbrand Random preferences and equilibrium analysis , 1971 .