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Indirect reciprocity describes a class of reputation-based mechanisms which may explain the prevalence of cooperation in groups where partners meet only once. The first model for which this has analytically been shown was the binary image scoring mechanism, where one's reputation is only based...
Persistent link: https://www.econbiz.de/10010743047
Consider a large population of individuals which can be in one of two distinct roles. The role of the individual is switched every now and then, and interactions occur between randomly paired individuals in different roles. These interactions are represented by a bimatrix game and individuals...
Persistent link: https://www.econbiz.de/10005793331
In a role game, players can condition their strategies on their player position in the base game. If the base game is strategically equivalent to a zero-sum game, the set of Nash equilibria of the role game is globally asymptotically stable under the best response dynamics. If the base game is 2...
Persistent link: https://www.econbiz.de/10005375566
Fictitious play is the classical myopic learning process, and games with strategic complementarities are an important class of games including many economic applications. Knowledge about convergence properties of fictitious play in this class of games is scarce, however. Beyond dominance...
Persistent link: https://www.econbiz.de/10005407536
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We study network competition with two-part tariffs and termination-based price discrimination in the presence of call externalities. We show that both the collusive and the welfare maximizing access charges fall below marginal cost. Moreover, bill-and-keep arrangements are welfare improving...
Persistent link: https://www.econbiz.de/10005412906
We present a generalized model of myopic best response adaptation in large populations. In asymmetric conflicts, individuals can be in the role of the row player or the column player. The idea that an individual's role need not be fixed is introduced explicitly in our model by a process of role...
Persistent link: https://www.econbiz.de/10005047579
We introduce call externalities in the standard model of network competition with termination-based price discrimination, and employ a simple graphical analysis to study the outcome of competition. In contrast to recent results in the literature, we find that even under linear pricing, access...
Persistent link: https://www.econbiz.de/10005076901
Using insights from the theory of projective geometry one can prove convergence of continuous fictitious play in a certain class of games. As a corollary, we obtain a kind of equilibrium selection result, whereby continuous fictitious play converges to a particular equilibrium contained in a...
Persistent link: https://www.econbiz.de/10005062342