When far-sighted agents may adjust their behavior only gradually , the issue of equilibrium selection in games becomes one of tension between "history" and "expectations". This paper analyzes whether, in this context, a planner may intervene successfully through short-run policies which redirect...

This paper investigates an evolutionary model of equilibrium selection in which agents are randomly paired every period to play some general symrnetric game of common interest (i.e., a game where some strategy profile Pareto- dominates al1 other configurations). Along the process, players tend...

This paper analyzes an evolutionary model where agents are locally matched to playa coordination game and can adjust both their strategy and location. Their decisions are subject to friction, so that an agent who migrates to a different location may be unable to adjust her strategy optimally to...

This paper proposes an aspiration-based model for (anonymous) cooperation where a large population of agents are re-matched every period to playa Prisoner's Dilemma. At each point in time, agents hold a certain common aspiration level which is updated on the basis of population-average...

This paper studies a strategic model of growth in which firms' accumulation and technological decisions are subject to both friction and external effects. This gives rise to a wide multiplicity of equilibrium behavior, which is consistent with quite different performances of the economy (e.g.,...

This paper introduces expectations into the framework of evolutionary games. On the one hand, (myopic) players are assumed to behave optimally according to the expectations they hold at each point of the process. On the other hand, expectations themselves are continuously updated according to...

This paper models the dynamic process through which a large society may succeed in building up its "social capital" by establishing a stable and dense pattern of interaction among its members. In the model, agents interact according to a collection of (idyosincratic) infinitely repeated...

Consider a large (continuum) population of finitely-lived agents organized in hierarchical levels.Every period, agents are matched to play a certain symmetric game. On the basis of the payoffsobtained, a certain p-fraction of those who performed best at each level are promoted upwords. Onthe...

This paper studies a stylized model of local interaction where agents choose from an ever increasing set of vertically ranked actions, e.g. technologies. The driving forces of the model are infrequent upward shifts ("updates"), followed by a rapid process of local imitation ("diffusion"). Our...

The paper studies an inter-temporal market context in which firms innovate, imitate, and compete in quantities and technological choices each period. Potential entrants enter if there are profitable opportunities; incumbent firms exit when they go bankrupt. The key aspect of the model is that...