CFDP 1414

On Local and Network Games

Author(s): 

Publication Date: April 2003

Pages: 23

Abstract: 

The knowledge constraints and transactions costs imposed by geographical distance, network connections and time conspire to justify local behavior as a good approximation for global rationality. We consider a class of games to illustrate this relationship and raise some questions as to what constitutes a satisfactory solution concept.

Keywords: 

Local games, Network games, Advertising

JEL Classification Codes:  C72, D43. D89, M39