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The effect that exogenous mistakes, made by players choosing their strategies, have on the dynamic stability for the replicator dynamic is analyzed for both asymmetric and symmetric normal form games. Through these perturbed games, the dynamic solution concept of limit asymptotic stability is...
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We consider the situation in which individuals in a finite population must repeatedly choose an action yielding an uncertain payoff. Between choices, each individual may observe the performance of one other individual. We search for rules of behavior with limited memory that increase expected...
Persistent link: https://www.econbiz.de/10004968204
We analyze the evolution of behavioral rules for learning how to play a two-armed bandit. Individuals have no information about the underlying pay-off distributions and have limited memory about their own past experience. Instead they must rely on information obtained trough observing the...
Persistent link: https://www.econbiz.de/10004968221
The evolutionary selection of outcomes (modelled using the replicator dynamics) in games with costless communication depends crucially on the structural assumptions made on the underlying population. (1) In conflicts between two interacting populations, common interest implies that the set of...
Persistent link: https://www.econbiz.de/10004968231
In consectutive rounds, each agent in a finite population chooses an action, is randomly matched, obtains a payoff and then observes the performance of another agent. An agent determines future behavior based on the information she receives from the present round. She chooses among the...
Persistent link: https://www.econbiz.de/10004968295
We extend the notions of evolutionary stability and, for the first time, that of neutral stability to asymmetric games played between two populations. Stability with respect to simultaneous entry of a small proportion of mutants into both populations is considered. Allocations where neither...
Persistent link: https://www.econbiz.de/10004968318
Consider a large population of individuals that are repeatedly randomly matched to play a cyclic 2x2 game such as Matching Pennies with fixed roles assigned in the game. Some learn by sampling previous play of a finite number of other individuals in the same role. We analyze population dynamics...
Persistent link: https://www.econbiz.de/10005032139
In a recent paper Bagwell (1995) pointed out that only the Cournot outcome, but not the Stackelberg outcome, can be supported by a pure Nash equilibrium when actions of the Stackelberg leader are observed with the slightest error. The Stackelberg outcome, however, remains close to the outcome of...
Persistent link: https://www.econbiz.de/10005032173