Partial bandwagon effects and local interactions

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× 3 coordination games and n×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.