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Sampling equilibrium, with an application to strategic voting
Authors:Martin J Osborne  Ariel Rubinstein  
Institution:a Department of Economics, University of Toronto, Toronto, Canada;b School of Economics, Tel Aviv University, Tel Aviv, Israel;c Department of Economics, Princeton University, USA
Abstract:We suggest an equilibrium concept for a strategic model with a large number of players in which each player observes the actions of only a small number of the other players. The concept fits well situations in which each player treats his sample as a prediction of the distribution of actions in the entire population, and responds optimally to this prediction. We apply the concept to a strategic voting model and investigate the conditions under which a centrist candidate can win the popular vote although his strength in the population is smaller than the strengths of the right and left candidates.
Keywords:Sampling equilibrium  Bounded rationality  Strategic voting
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