We study a repeated game with asymmetric information about a dynamic state of nature. In the course of the game, the better-informed player can communicate some or all of his information to the other. Our model covers costly and/or bounded communication. We characterize the set of equilibrium...

This article shows the results of experiments where subjects play the Schelling’s spatial proximity model. Two types of experiments are conducted: one in which choices are made sequentially and a variation of the first where the decision making is simultaneous. The results of the...

New systems can be designed, developed, and managed as societies of agents that interact with each other by offering and providing services. These systems can be viewed as complex networks where nodes are bounded rational agents. In order to deal with complex goals, they require the cooperation...

A celebrated result of Abreu and Rubinstein [1] states that in repeated games, when the players are restricted to playing strategies that can be im- plemented by fnite automata and they have lexicographic preferences, the set of equilibrium payoffs is a strict subset of the set of feasible and...

This paper studies the stability of communication protocols that deal with transmission errors. We consider a coordination game between an informed sender and an uninformed decision maker, the receiver, who communicate over a noisy channel. The sender's strategy, called a code, maps states of...

We examine the interplay between a person's individual preference and the social influence others exert. We provide a model of network relationships with conflicting preferences, where individuals are better off coordinating with those around them, but not all prefer the same action. We test our...

In many economic situations, a player pursues coordination or anti-coordination with her neighbors on a network, but she also has intrinsic preferences among the available options. We here introduce a model which allows to analyze this issue by means of a simple framework in which players...