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Persistent link: https://www.econbiz.de/10005158727
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.
Persistent link: https://www.econbiz.de/10005307496