Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/118147 
Year of Publication: 
2003
Series/Report no.: 
Nota di Lavoro No. 121.2003
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
In the literature of psychology and economics it is frequently observed that individuals tend to imitate similar individuals. A fundamental question is whether the outcome of such imitation can be consistent with self-interested behaviour. We propose that this consistency requires the existence of a Nash equilibrium that induces a partition of the player set into relatively few groups of similar individuals playing the same or similar strategies. In this paper we define and characterise a family of games admitting existence of approximated Nash equilibria in pure strategies that induce partition of the player sets with the desired properties. We also introduce the Conley-Wooders concept of 'crowding types' into our description players and distinguish between the crowding type of a player - those characteristics of a player that have direct effects on others - and his tastes, taken to directly affect only that player. With this assumption of 'within crowding type anonymity' and a 'convexity of taste-types' assumption we show that the number of groups can be uniformly bounded.
Subjects: 
Social Conformity
Nash Equilibrium
JEL: 
C70
Document Type: 
Working Paper

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