Large deviations and equilibrium selection in large populations
AbstractThis paper uses the theory of large deviations to analyse equilibrium selection in one-dimensional games with large populations where the system evolves according to a jump Markov process. The equilibria selected maximise a quasi-potential function which can be determined by solving a polynomial equation. Estimates of waiting times are also given. It shows that equilibria about which there is more noise are less likely to be selected and clarifies the role of the limiting deterministic dynamic in selection.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 132 (2007)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622869
Other versions of this item:
- Alan Beggs, 2002. "Large Deviations and Equilibrium Selection in Large Populations," Economics Series Working Papers 129, University of Oxford, Department of Economics.
- 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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fudenberg, D. & Kreps, D.M., 1992.
"Learning Mixed Equilibria,"
92-13, Massachusetts Institute of Technology (MIT), Department of Economics.
- F. Biesmans, 1977. "A Survey," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 48(1), pages 5-36, 01.
- Beggs, A., 2000.
"Stochastic Evolution with Slow Learning,"
Economics Series Working Papers
9933, University of Oxford, Department of Economics.
- BERGIN, James & LIPMAN, Bart, 1994.
"Evolution with State-Dependent Mutations,"
CORE Discussion Papers
1994055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- K. Binmore & L. Samuelson & K. Vaughn, 2010. "Musical Chairs: Modelling Noisy Evolution," Levine's Working Paper Archive 487, David K. Levine.
- Alan Beggs, 2003.
"Waiting Times and Equilibrium Selection,"
Economics Series Working Papers
142, University of Oxford, Department of Economics.
- Diamond, Peter A, 1982.
"Aggregate Demand Management in Search Equilibrium,"
Journal of Political Economy,
University of Chicago Press, vol. 90(5), pages 881-94, October.
- Binmore, Ken & Samuelson, Larry, 1997. "Muddling Through: Noisy Equilibrium Selection," Journal of Economic Theory, Elsevier, vol. 74(2), pages 235-265, June.
- Fudenberg, D. & Harris, C., 1992.
"Evolutionary dynamics with aggregate shocks,"
Journal of Economic Theory,
Elsevier, vol. 57(2), pages 420-441, August.
- Benaim, Michel & Weibull, Jörgen W., 2000.
"Deterministic Approximation of Stochastic Evolution in Games,"
Working Paper Series
534, Research Institute of Industrial Economics, revised 30 Oct 2001.
- Michel BenaÔm & J–rgen W. Weibull, 2003. "Deterministic Approximation of Stochastic Evolution in Games," Econometrica, Econometric Society, vol. 71(3), pages 873-903, 05.
- D. Foster & P. Young, 2010. "Stochastic Evolutionary Game Dynamics," Levine's Working Paper Archive 493, David K. Levine.
- P. Young, 1999. "The Evolution of Conventions," Levine's Working Paper Archive 485, David K. Levine.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.