Article ID Journal Published Year Pages File Type
5071866 Games and Economic Behavior 2014 15 Pages PDF
Abstract

•We consider minimum effort games played on a network.•We consider a family of behavioral rules including different imitation rules.•Without spillovers, inefficient conventions arise independently of the network.•With spillovers, convergence to the efficient convention can obtain.•We identify a condition on the network which characterizes efficiency.

We consider minimum-effort games played in an arbitrary network. For a family of imitation behavioral rules, including Imitate the Best and the Proportional Imitation Rule, we show that inefficient conventions arise independently of the interaction structure, if information is limited to the interaction neighborhoods. In the presence of information spillovers, we provide a condition on the network structure that guarantees the emergence of efficient conventions. In contrast, if this condition is violated we will observe inefficient conventions, even in the presence of information spillovers.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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