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Behavioral Properties of Correlated Equilibrium; Social Group Structures with Conformity and Stereotyping

Author

Listed:
  • Edward Cartwright

    (Department of Economics, Keynes College, University of Kent)

  • Myrna Wooders

    (Department of Economics, Vanderbilt University)

Abstract

We explore the potential for correlated equilibrium to capture conformity to norms and the coordination of behavior within social groups. Given a partition of players into social groups we propose properties that one may expect of a correlated equilibrium: within-group anonymity, group independence, predictable group behavior and stereotyped beliefs. We then demonstrate that (a) a correlated equilibrium satisfying these properties exists in games with many players (b) a player who stereotypes other players cannot do better with correct beliefs and (c) correlation allows predictability of group behavior, which ensures that a correlated equilibrium is approximately ex-post stable.

Suggested Citation

  • Edward Cartwright & Myrna Wooders, 2008. "Behavioral Properties of Correlated Equilibrium; Social Group Structures with Conformity and Stereotyping," Vanderbilt University Department of Economics Working Papers 0814, Vanderbilt University Department of Economics.
    • Handle: RePEc:van:wpaper:0814
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Non-cooperative games; correlated equilibrium; large games; behavioral conformity; stereotyping; identity; expost stability; group anonymity; group independence; predictable group behavior;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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