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Constrained mobility and the evolution of efficient outcomes

Pin, Paolo and Weidenholzer, Elke and Weidenholzer, Simon (2017) 'Constrained mobility and the evolution of efficient outcomes.' Journal of Economic Dynamics and Control, 82 (C). pp. 165-175. ISSN 0165-1889

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We study an evolutionary model akin to the one studied in Anwar (2002) where a set of agents use myopic best response learning to i) determine their action in a 2 × 2 coordination game and ii) to choose on which of multiple islands to interact. We focus on the case where the number of agents maximally allowed on each islands is constrained. We extend Anwar’s original analysis by considering the case when there may be more than two islands. We find that if the constraints are such that one island may be empty, universal coordination on the payoff dominant action is possible in the long run. If the constraints are such that all islands will be full, then for relatively mild constraints, and apart from special cases, the coexistence of conventions will occur, with one island coordinating on the risk dominant action and all remaining islands coordinating on the payoff dominant action. For relatively stringent constraints all agents will play the risk dominant action.

Item Type: Article
Uncontrolled Keywords: Mobility; Local interactions; Learning; Coordination games
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 30 Jun 2017 14:44
Last Modified: 06 Jan 2022 14:47

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