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The exact solution of spatial logit response games

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  • Konno, Tomohiko
  • Ioannides, Yannis M.

Abstract

This paper proposes a logit response game with a spatial social structure and solves it exactly. We derive closed-form solutions for the strategy choice probabilities, the spatial correlation function of strategies of distant players, and the expected utility. We study how the probability of adopting a cooperative strategy in a prisoner’s dilemma game and the probability of adopting Pareto efficient strategies in a cooperation game are affected by changes in the parameter that expresses payoff-responsiveness.

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  • Konno, Tomohiko & Ioannides, Yannis M., 2019. "The exact solution of spatial logit response games," Mathematical Social Sciences, Elsevier, vol. 97(C), pages 1-10.
    • Handle: RePEc:eee:matsoc:v:97:y:2019:i:c:p:1-10
    DOI: 10.1016/j.mathsocsci.2018.09.003
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    Cited by:

    1. Ahmad, Munir & Wu, Yiyun, 2022. "Household-based factors affecting uptake of biogas plants in Bangladesh: Implications for sustainable development," Renewable Energy, Elsevier, vol. 194(C), pages 858-867.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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