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Congestion, Coordination and Matching

Author

Listed:
  • Marja-Liisa Halko

    (Department of Accounting and Finance, Helsinki School of Economics)

  • Hannu Salonen

    (Department of Economics, University of Turku)

Abstract

We study the existence of pure strategy Nash equilibria in finite congestion and coordination games. Player set is divided into two disjoint groups, called men and women. A man choosing an action a is better off if the number of other men choosing a decreases, or if the number of women choosing a increases. Analogously, a woman becomes better off if more men or fewer women choose the same action as she does. Existence proofs are constructive: we build simple ``best reply'' algorithms that converge to an equilibrium.

Suggested Citation

  • Marja-Liisa Halko & Hannu Salonen, 2008. "Congestion, Coordination and Matching," Discussion Papers 28, Aboa Centre for Economics.
    • Handle: RePEc:tkk:dpaper:dp28
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    File URL: http://www.ace-economics.fi/kuvat/dp%20028.pdf
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    References listed on IDEAS

    as
    1. Thomas Quint & Martin Shubik, 1994. "A Model of Migration," Cowles Foundation Discussion Papers 1088, Cowles Foundation for Research in Economics, Yale University.
    2. Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1997. "Equilibria in a Model with Partial Rivalry," Journal of Economic Theory, Elsevier, vol. 72(1), pages 225-237, January.
    3. Konishi, Hideo & Le Breton, Michel & Weber, Shlomo, 1997. "Pure Strategy Nash Equilibrium in a Group Formation Game with Positive Externalities," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 161-182, October.
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    More about this item

    Keywords

    congestion; coordination; matching;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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