Micro motives and macro behaviour

All economic action involves interaction among individuals. Moreover,
most of these interactions have a primarily social character. We talk
with friends, we ask others for advice, we arrange to meet people, we
work together with colleagues, we live next to neighbours. This
thesis takes a closer analytical look at the issue of social
interaction in relation with the decision-making of individuals.
Inspired by ideas from evolutionary game theory, learning theory, and
models of bounded rationality it considers three main topics:
problems of coordination, economic effects of rumours, and
behavioural consequences of regret. The study demonstrates in
particular how both individual decision-making and social interaction
affect not only the behaviour of individuals in an economy but also,
via the system of interaction, the aggregate behaviour of the economy
itself.