Article ID Journal Published Year Pages File Type
5062273 Economics Letters 2006 6 Pages PDF
Abstract
We consider a circular city model as in Ellison [Ellison, G., 1993. Learning, local interaction, and coordination, Econometrica 61, 1047-1071], where agents follow imitation rules rather than myopic best-response. If interactions are neither global nor limited to the immediate neighbors, payoff-efficient equilibria, and not risk-dominant ones, can be uniquely selected.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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