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Alós-Ferrer, Carlos 1
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Economics Letters 1
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Learning, bounded memory, and inertia
Alós-Ferrer, Carlos - In: Economics Letters 101 (2008) 2, pp. 134-136
This paper considers bounded-memory players in a coordination game, who imitate the most successful remembered actions. With exogenous inertia, risk-dominant equilibria are selected independently of the length of memory. Without inertia, Pareto-dominant equilibria arise when memory is long enough.
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