Title: Formation of Rank Structure through Self Interested Interaction
Speaker: Saish Nevrekar
Venue: Room LT 204, Lecture Hall Complex
Time: 11:30 am, Tuesday February 17, 2015
Abstract: Agents in an economy are solely interested in their relative position in the economy. Mutually interacting with one another benefits each of the agents involved in the interaction to further their self interest. Such interactions lead to the formation of coalitions. The agents are constrained to being a part of just one coalition. The agreements between the agents are non-binding. Assuming complete information, the paper develops an algorithm for attaining equilibrium partition for Rank Stable economies. It is shown that for Non Rank Stable economies the rank structure will not be altered due to interactions between agents; it will be identical to the endowment rank structure. The extension of this model assumes the agents to be born into a social network. The information of agents linked directly to each other is common knowledge, but there is incomplete information regarding those agents who are indirectly linked. The Markov Chain Process is used to analyse the convergence of this system over finite periods of interaction.
About the speaker: The speaker is a student at IGIDR, Mumbai.