Heterogeneous Interacting Economic Agents and Stochastic Games

Stochastic games with infinitely many interacting agents

We introduce and study a class of infinite-horizon non-zero-sum non-cooperative stochastic games with infinitely many interacting agents using ideas of statistical mechanics. First we show, in the general case of asymmetric interactions, the existence of a strategy that allows any player to eliminate losses after a finite random time. In the special case of symmetric interactions, we also prove...

Economies with heterogeneous interacting learning agents

Economic agents differ from physical atoms because of the learning capability and memory, which lead to strategic behaviour. Economic agents learn how to interact and behave by modifying their behaviour when the economic environment changes. We show that business fluctuations are endogenously generated by the interaction of learning agents via the phenomenon of regenerative-coordination, i.e. a...

Efficiency and Equity in Collective Systems of Interacting Heterogeneous Agents

In this paper we address the issue realizing efficient and equitable utilization of limited resources by collective decision of interacting heterogeneous agents. There is no presumption that collective action of interacting agents leads to collectively satisfactory results without any central authority. How well agents do for it in adapting to their environment is not the same thing as how sati...

Stationary equilibria in discounted stochastic games with weakly interacting players

We give sufficient conditions for a non-zero sum discounted stochastic game with compact and convex action spaces and with norm-continuous transition probabilities, but with possibly unbounded state space, to have a Nash equilibrium in homogeneous Markov strategies that depends in a Lipschitz continuous manner on the current state. If the underlying state space is compact this yields the existe...

Toy Models of Markets With Heterogeneous Interacting Agents