Research Colloquium Wednesday, November 28, 2012
Nash equilibria in models of social interactionDr. Shlomo Weber
Department of Economics
Richard Johnson Center for Economic Studies
Southern Methodist University
We consider a large class of games with local and global social interactions, where agent's local interactions are represented by bilateral links with her peers, whereas global interactions are viewed as the conformity effect. We show that every game in this class admits Nash equilibrium in pure strategies. We also discuss applications of this result to social actions and the theory of international alliances.