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Olivier BOCHET (NYU Abu Dhabi) – “Perceived Competition” (joint work with Mathieu Faure, Yan Long and Yves Zenou)”
Séminaire Microéconomie : Tous les mercredis
Heure : 12h15 – 13h30
Date : 20/09/2023
Salle : 3001
Olivier BOCHET (NYU Abu Dhabi) – « Perceived Competition” (joint work with Mathieu Faure, Yan Long and Yves Zenou) » –
CV : We consider economic situations in which agents have imperfect knowledge about the set of agents they are in competition with. Imperfect knowledge is captured through a directed graph that we call a perception network. We introduce an equilibrium concept, Perception-Consistent Equilibrium (PCE), a self-confirming equilibrium in which agents only perceive local competitors. We show that, at each PCE, agents’ action levels are proportional to their eigenvector centrality in the perception network. Inactivity in parts of the perception network remains salient, even at the unique stable PCE. Our model can explain why some individuals living in closed communities (such as criminal gangs) make decisions only based on their local environment while others are more aware of the global competition they are facing.
Julien COMBE (Pôle d’Economie du CREST)
Yves Le YAOUNQ (Pôle d’Economie du CREST)
Matias NUNEZ (Pôle d’Economie du CREST)