Econometrica: Jul, 1984, Volume 52, Issue 4

Continuum and Finite-Player Noncooperative Models of Competition

https://doi.org/0012-9682(198407)52:4<975:CAFNMO>2.0.CO;2-P
p. 975-994

Edward J. Green

The anonymous interaction of large numbers of economic agents is a kind of noncooperative situation which is markedly different from small-numbers strategic conflict. The nonatomic game has been introduced as a model for these many-agent situations. This paper contains a precise definition of what it means for a nonatomic game to be the limit of a sequence of finite-player games, and a theorem which states when the limit of equilibria of finite-player games will be an equilibrium of the nonatomic limit game. This is analogous to theorems prompted by Edgeworth's conjecture in core theory.