Reesarch seminar “FARSIGHTED STABILITY WITH HETEROGENEOUS EXPECTATIONS” by Francis Bloch
WHEN: Friday, October 13th, 12 p.m. – 1 p.m.
WHERE: Block C3 (GSB/GSPP Building), 3rd floor, Room 3037
ABSTRACT: This paper analyzes farsighted stable sets when agents have heterogeneous expectations over the dominance paths. We consider expectation functions satisfying two properties of path-persistence and consistency. We show that farsighted stable sets with heterogeneous expectations always exist and that any singleton farsighted stable set with common expectations is a farsighted stable set with heterogeneous expectations. We characterize singleton farsighted stable sets with heterogeneous expectations in one-to-one matching models and voting models, and show that the relaxation of the hypothesis of common expectations greatly expands the set of states which can be supported as singleton farsighted stable sets.
Professor Francis Bloch is Professor of Economics at Université Paris 1 and the Paris School of Economics. He graduated from HEC and received a Ph.D. in Economics at the University of Pennsylvania. He taught at Brown University, HEC Paris, Université Catholique de Louvain, Université d’Aix-Marseille and Ecole Polytechnique. His research interests are coalition and network theory, and he also worked on applications in Industrial Organization, Public and Development Economics. His research has been published in American Economic Review, Rand Journal of Economics, Journal of Economic Theory, Games and Economic Behavio. He is currently an Associate Editor of Econometrica, Economics Letters, Games and Economic Behavior, Journal of Public Economic Theory and Mathematical Social Sciences.