Stochastic stability in best shot network games
AbstractThe best shot game applied to networks is a discrete model of many processes of contribution to local public goods. It generally has a wide multiplicity of equilibria that we refine through stochastic stability. We show that, depending on how we define perturbations – i.e., possible mistakes that agents make – we can obtain very different sets of stochastically stable states. In particular and non-trivially, if we assume that the only possible source of error is that of a contributing agent that stops doing so, then the only stochastically stable states are Nash equilibria with the largest contribution.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 75 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/622836
Networks; Best shot game; Stochastic stability;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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