Article ID Journal Published Year Pages File Type
5098552 Journal of Economic Dynamics and Control 2014 13 Pages PDF
Abstract
This paper considers a finite population of agents located within an arbitrary fixed network. Every agent plays a coordination game with his neighbors. If one neighbor's payoff from a specific interaction exceeds his average payoff per interaction, the neighbor is perceived as better performing. Over time agents imitate the strategies of their better performing neighbors; occasionally they make mistakes. Sufficient conditions for emergence of Pareto efficient and risk dominant conventions are provided. The paper also illustrates the main results through relevant examples.
Related Topics
Physical Sciences and Engineering Mathematics Control and Optimization
Authors
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