We consider partial bandwagon properties in the context of coordination games to capture the idea of weak network externalities. We then study a local interactions model where agents play a coordination game following a noisy best-reply process. We identify conditions such that Globally Pairwise Risk Dominant strategies are selected. Examples include arbitrary 3 X 3 coordination games and n X n supermodular games. A comparison with the global interactions benchmark shows that the nature of interactions might alter the long-run results themselves, and not only the speed of convergence. We also illustrate that the simultaneous coexistence of conventions is possible for games with at least 5 strategies.
- Partial Bandwagon Properties,
- Pairwise Risk Dominance
Available at: http://works.bepress.com/alos/9/