A random intersection graph is constructed by assigning independently to each vertex a subset of given set and drawing an edge between two vertices if only their respective subsets intersect. In this article model developed in which weight with larger weights are more likely be assigned large subsets. The distribution the degree characterized shown depend on vertex. particular, power law, will as well. Furthermore, asymptotic expression for clustering derived. By tuning parameters model, it...

Abstract We identify a new mechanism through which cultural diversity affects economic outcomes, based on model of culture as shared cognition. Under this view, matters because it increases strategic uncertainty. The can help better understand variety disparate evidence, including why homogeneous societies be more conformist, diverse may get stuck in low-trust trap, companies with strong fail to adopt superior work practices, and autocratic rulers overinvest state capacity.

The standard framework for analyzing games with incomplete information models players as if they have an infinite depth of reasoning. This paper generalizes the type spaces Harsanyi (1967-1968) so that can a finite innovation is coarse perception higher-order beliefs other players, thus formalizing small-world idea Savage (1954) in type-space context. Unlike finite-order reasoning, reasoning reason about events these are generated by sufficiently low order. In particular, event F be common...

We used a low-temperature scanning tunneling microscope to study Zn- and Cd-doping atoms near the (110)-cleavage surfaces of GaAs InP at 4.2 K. The filled-state images showed centro-symmetric elevations while empty-state circular depressions. attribute these features influence Coulomb potential ionized doping on number states available for tunneling. In few GaAs(110) surface, depressions were surrounded by maxima, which are probably direct observations Friedel oscillations. For InP(110) all...

Rationalizability is a central concept in game theory.Since there may be many rationalizable strategies, applications commonly use refinements to obtain sharp predictions.In an important paper, Weinstein and Yildiz (2007) show that no refinement robust perturbations of high-order beliefs.We do exist if we relax the assumption all players are unlimited their reasoning ability.In particular, for class models, every strict Bayesian-Nash equilibrium robust.In these environments, researcher...

We introduce a model of homophily that does not rely on the assumption homophilous preferences. Rather, it builds dual process account Theory Mind in psychology which focuses role introspection decision making. Homophily emerges because players find easier to put themselves into shoes member their own group. Endogenizing drivers permits us derive novel comparative statics results and explain commonly observed features social economic networks.

We investigate the limiting behavior of trader wealth and prices in a simple prediction market with finite set participants having heterogeneous beliefs. Traders bet repeatedly on outcome binary event fixed Bernoulli success probability. A class strategies, including (fractional) Kelly betting constant relative risk aversion (CRRA) are considered. show that when traders willing to only small fraction their any period, belief heterogeneity can persist indefinitely; if bets large proportion...

Behavioral economics provides several motivations for the common observation that agents appear somewhat unwilling to deviate from recent choices. More choices can be more salient than other choices, or readily available in agent’s mind. Alternatively, may have formed habits, use rules of thumb. This paper discrete-time adjustment processes strategic games which players display such a bias towards In addition, choose best replies beliefs supported by observed play past. We characterize limit...

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Abstract This paper gives a critical account of the literature on adaptive behaviour in minority game, simple congestion game. The has proposed model which differs markedly from many standard learning models that players are endowed with fixed subset behavioural rules or response modes map observed history to actions. These need not have interpretation be derived some form optimizing behaviour. Nonetheless, this rise is close equilibrium at aggregate level. individual‐level predicted by...

A standard assumption in game theory is that players have an infinite depth of reasoning: they think about what others and othersthink, so on, ad infinitum. However, practice, may a finite reasoning. For example, player reason other think, but not he thinks. This paper proposes class type spaces generalizes the space formalism due to Harsanyi (1967) it can model with arbitrary I show does impose any restrictions on belief hierarchies be modeled, thus generalizing classic result Mertens Zamir...

This paper presents a novel mechanism under which diversity affects performance even if it has no direct impact on payoffs. Diversity matters because influences the degree of strategic uncertainty that players face. We model this by incorporating dual process account Theory Mind into standard game-theoretic framework. Whether is cost or benefit depends whether primary concern to avoid miscoordination break out an inefficient Nash equilibrium.

We investigate the limiting behavior of trader wealth and prices in a simple prediction market with finite set participants having heterogeneous beliefs. Traders bet repeatedly on outcome binary event fixed Bernoulli success probability. A class strategies, including (fractional) Kelly betting constant relative risk aversion (CRRA) are considered. show that when traders willing to only small fraction their any period, belief heterogeneity can persist indefinitely; if bets large proportion...

Type structures are a simple device to describe higher-order beliefs. However, how can we check whether two types generate the same belief hierarchy? This paper generalizes concept of type morphism and shows that one structure is contained in another if only former be mapped into other using generalized morphism. Hence, every hierarchy vice versa. Importantly, morphisms do not make reference hierarchies. We use our results characterize conditions under which hierarchy.