Advanced Search
MyIDEAS: Login to save this article or follow this journal

Coordination Games and Local Interactions: A Survey of the Game Theoretic Literature

Contents:

Author Info

  • Simon Weidenholzer

    ()
    (Department of Economics, University of Vienna, Hohenstaufengasse 9, A-1010 Vienna, Austria)

Abstract

We survey the recent literature on coordination games, where there is a conflictbetween risk dominance and payoff dominance. Our main focus is on models of local interactions, where players only interact with small subsets of the overall population rather than with society as a whole. We use Ellison’s [1] Radius-Coradius Theorem to present prominent results on local interactions. Amongst others, we discuss best reply learning in a global- and in a local- interaction framework and best reply learning in multiple location models and in a network formation context. Further, we discuss imitation learning in a localandin a global- interactions setting.

Download Info

If 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.
File URL: http://www.mdpi.com/2073-4336/1/4/551/pdf
Download Restriction: no

File URL: http://www.mdpi.com/2073-4336/1/4/551/
Download Restriction: no

Bibliographic Info

Article provided by MDPI, Open Access Journal in its journal Games.

Volume (Year): 1 (2010)
Issue (Month): 4 (November)
Pages: 551-585

as in new window
Handle: RePEc:gam:jgames:v:1:y:2010:i:4:p:551-585:d:10210

Contact details of provider:
Web page: http://www.mdpi.com/

Related research

Keywords: coordination games; learning; local interactions;

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Durieu, Jacques & Solal, Philippe, 2003. "Adaptive play with spatial sampling," Games and Economic Behavior, Elsevier, vol. 43(2), pages 189-195, May.
  2. Alós-Ferrer, Carlos & Weidenholzer, Simon, 2008. "Contagion and efficiency," Journal of Economic Theory, Elsevier, vol. 143(1), pages 251-274, November.
  3. M. Kandori & R. Rob, 2010. "Evolution of Equilibria in the Long Run: A General Theory and Applications," Levine's Working Paper Archive 502, David K. Levine.
  4. Jose Apesteguia & Steffen Huck & Jorg Oechssler, 2003. "Imitation - Theory and Experimental Evidence," Experimental 0309001, EconWPA.
  5. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
  6. J. Bergin & B. Lipman, 2010. "Evolution with State-Dependent Mutations," Levine's Working Paper Archive 486, David K. Levine.
  7. Joerg Oechssler, 1994. "Decentralization and the Coordination Problem," Game Theory and Information 9403004, EconWPA.
  8. Alos-Ferrer, Carlos & Weidenholzer, Simon, 2007. "Partial bandwagon effects and local interactions," Games and Economic Behavior, Elsevier, vol. 61(2), pages 179-197, November.
  9. Ahmed Anwar, 2004. "On the Co-Existence of Conventions," ESE Discussion Papers 68, Edinburgh School of Economics, University of Edinburgh.
  10. L. Blume, 2010. "The Statistical Mechanics of Strategic Interaction," Levine's Working Paper Archive 488, David K. Levine.
  11. Maruta, Toshimasa, 1997. "On the Relationship between Risk-Dominance and Stochastic Stability," Games and Economic Behavior, Elsevier, vol. 19(2), pages 221-234, May.
  12. Sandholm, William H., 1998. "Simple and clever decision rules for a model of evolution," Economics Letters, Elsevier, vol. 61(2), pages 165-170, November.
  13. Ted Temzelides, 2000. "On the Geography of Conventions," Econometric Society World Congress 2000 Contributed Papers 0117, Econometric Society.
  14. Alós-Ferrer, Carlos & Netzer, Nick, 2010. "The logit-response dynamics," Games and Economic Behavior, Elsevier, vol. 68(2), pages 413-427, March.
  15. Adam Szeidl & In Ho Lee & Akos Valentinyi, 2001. "Contagion and State Dependent Mutations," IEHAS Discussion Papers 0104, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  16. Lawrence Blume, 1993. "The Statistical Mechanics of Best-Response Strategy Revision," Game Theory and Information 9307001, EconWPA, revised 26 Jan 1994.
  17. M. Kandori & R. Rob, 2010. "Bandwagon Effects and Long Run Technology Choice," Levine's Working Paper Archive 501, David K. Levine.
  18. Petrosjan, Leon A. & Zenkevich, Nikolay A. (Eds.), 2008. "GAME THEORY AND MANAGEMENT. Collected abstracts of papers presented on the Second International Conference Game Theory and Management," Conference Papers 82, Graduate School of Management, St. Petersburg State University.
  19. Matthew O. Jackson & Alison Watts, 2000. "On the Formation of Interaction Networks in Social Coordination Games," Econometric Society World Congress 2000 Contributed Papers 0778, Econometric Society.
  20. Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  21. Mathias Staudigl & Simon Weidenholzer, 2014. "Constrained Interactions and Social Coordination," Economics Discussion Papers 747, University of Essex, Department of Economics.
  22. Goyal, Sanjeev & Vega-Redondo, Fernando, 2005. "Network formation and social coordination," Games and Economic Behavior, Elsevier, vol. 50(2), pages 178-207, February.
  23. Weidenholzer, Simon, 2012. "Long-run equilibria, dominated strategies, and local interactions," Games and Economic Behavior, Elsevier, vol. 75(2), pages 1014-1024.
  24. Hojman, Daniel A. & Szeidl, Adam, 2006. "Endogenous networks, social games, and evolution," Games and Economic Behavior, Elsevier, vol. 55(1), pages 112-130, April.
  25. Atsushi Kajii & Stephen Morris, 1997. "The Robustness of Equilibria to Incomplete Information," Econometrica, Econometric Society, vol. 65(6), pages 1283-1310, November.
  26. Sanjeev Goyal, 2007. "Introduction to Connections: An Introduction to the Economics of Networks
    [Connections: An Introduction to the Economics of Networks]
    ," Introductory Chapters, Princeton University Press.
  27. Carlos Alós-Ferrer & Simon Weidenholzer, 2010. "Imitation and the Role of Information in Overcoming Coordination Failures," Vienna Economics Papers 1008, University of Vienna, Department of Economics.
  28. Pavlo Blavatsky, 2003. "Note on "Small Feedback-based Decisions and Their Limited Correspondence to Description-based Decisions"," CERGE-EI Working Papers wp218, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  29. Kim, Chongmin & Wong, Kam-Chau, 2010. "Long-run equilibria with dominated strategies," Games and Economic Behavior, Elsevier, vol. 68(1), pages 242-254, January.
  30. Eshel, Ilan & Samuelson, Larry & Shaked, Avner, 1998. "Altruists, Egoists, and Hooligans in a Local Interaction Model," American Economic Review, American Economic Association, vol. 88(1), pages 157-79, March.
  31. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-93, May.
  32. Staudigl, Mathias, 2011. "Potential games in volatile environments," Games and Economic Behavior, Elsevier, vol. 72(1), pages 271-287, May.
  33. Bhaskar, V & Vega-Redondo, F, 1996. "Migration and the Evolution of Conventions," UFAE and IAE Working Papers 354.96, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  34. Alos-Ferrer, Carlos & Kirchsteiger, Georg & Walzl, Markus, 2006. "On the Evolution of Market Institutions: The Platform Design Paradox," CEPR Discussion Papers 5538, C.E.P.R. Discussion Papers.
  35. Myatt, David P. & Wallace, Chris, 2003. "A multinomial probit model of stochastic evolution," Journal of Economic Theory, Elsevier, vol. 113(2), pages 286-301, December.
  36. Arthur J Robson & Fernando Vega-Redondo, 1999. "Efficient Equilibrium Selection in Evolutionary Games with Random Matching," Levine's Working Paper Archive 2112, David K. Levine.
  37. Joerg Oechssler, 1993. "Competition among Conventions," Game Theory and Information 9312001, EconWPA, revised 04 Dec 1993.
  38. Dieckmann, Tone, 1999. "The evolution of conventions with mobile players," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 93-111, January.
  39. Aderlini, L. & Ianni, A., 1993. "Path Dependence and Learning from Neighbours," Papers 186, Cambridge - Risk, Information & Quantity Signals.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Weidenholzer, Simon, 2012. "Long-run equilibria, dominated strategies, and local interactions," Games and Economic Behavior, Elsevier, vol. 75(2), pages 1014-1024.
  2. Goodman, James, 2014. "Evidence for ecological learning and domain specificity in rational asset pricing and market efficiency," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 48(C), pages 27-39.
  3. Ge Jiang & Simon Weidenholzer, 2014. "Local Interactions and Switching Costs," Economics Discussion Papers 746, University of Essex, Department of Economics.
  4. Banerjee, Simanti & Kwasnica, Anthony M & Shortle, James S, 2011. "Agglomeration Bonus in Local Networks: A laboratory examination of spatial coordination failure," Stirling Economics Discussion Papers 2011-18, University of Stirling, Division of Economics.
  5. Jacques Durieu & Philippe Solal, 2014. "Local interactions and p-best response set," Post-Print halshs-01002448, HAL.
  6. Cui, Zhiwei, 2014. "More neighbors, more efficiency," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 103-115.
  7. Carlos Alós–Ferrer & Nick Netzer, 2012. "Robust stochastic stability," ECON - Working Papers 063, Department of Economics - University of Zurich, revised Jan 2014.
  8. Hsiao-Chi Chen & Yunshyong Chow & Li-Chau Wu, 2013. "Imitation, local interaction, and coordination," International Journal of Game Theory, Springer, vol. 42(4), pages 1041-1057, November.
  9. Jacques Durieu & Hans Haller & Philippe Solal, 2011. "Nonspecific Networking," Games, MDPI, Open Access Journal, vol. 2(1), pages 87-113, February.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:gam:jgames:v:1:y:2010:i:4:p:551-585:d:10210. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team).

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.