ABSTRACT
Much attention has recently been paid to the construction of macroeconomic models which incorporate nonpairwise externalities among agents, such as fads or bandwagon effects. These effects are called field effects in [1], [2], and [3], and referred to as social influences in [4] and [5]. See also [6], [7], [8], or [9]. An example in sociology is [10]. By modeling these externalities we hope to deduce an “emergent property” of a system of agents, i.e., aggregate properties or characteristics of situations involving a large number of interacting economic agents. These interactions are not pairwise in nature, but are between individual agents and aggregate environments, which are in turn determined by or dependent on the behavior or decisions of the collection of agents.
