Alós-Ferrer, Carlos and Weidenholzer, Simon (2007) Partial bandwagon effects and local interactions. Games and Economic Behavior, 61 (2). pp. 179-197. DOI https://doi.org/10.1016/j.geb.2007.01.007
Alós-Ferrer, Carlos and Weidenholzer, Simon (2007) Partial bandwagon effects and local interactions. Games and Economic Behavior, 61 (2). pp. 179-197. DOI https://doi.org/10.1016/j.geb.2007.01.007
Alós-Ferrer, Carlos and Weidenholzer, Simon (2007) Partial bandwagon effects and local interactions. Games and Economic Behavior, 61 (2). pp. 179-197. DOI https://doi.org/10.1016/j.geb.2007.01.007
Abstract
We consider partial bandwagon properties in the context of coordination games to capture the idea of weak network externalities. We then study a local interactions model where agents play a coordination game following a noisy best-reply process. We show that globally pairwise risk dominant strategies are selected in arbitrary 3 × 3 coordination games, but not necessarily in larger games. A comparison with the global interactions benchmark shows that the nature of interactions might alter the long-run results themselves, and not only the speed of convergence. We also illustrate that the simultaneous coexistence of conventions is possible for games with at least 5 strategies. © 2007 Elsevier Inc. All rights reserved.
Item Type: | Article |
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Uncontrolled Keywords: | coordination games; learning; mutation; local interactions; bandwagon properties |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 27 Jun 2012 15:10 |
Last Modified: | 30 Oct 2024 20:41 |
URI: | http://repository.essex.ac.uk/id/eprint/2638 |