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On the relationship between p-dominance and stochastic stability in network games

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  • Daniel Christopher Opolot

    (University of Cape Town)

Abstract

This paper examines the properties of networks that determine the uniqueness of long-run equilibria emerging from symmetric coordination games when players are myopic best responders. We identify the contagion threshold and the network diameter as two measures of finite networks that determine when strategies in the minimal p-best response set of a coordination game are uniquely stochastically stable. We show that when the contagion threshold is greater or equal to p, strategies in the minimal p-best response set are uniquely stochastically stable in strongly connected networks with diameter greater or equal to seven. The contagion threshold and the network diameter are easy to compute and their values are unique for every strongly connected network.

Suggested Citation

  • Daniel Christopher Opolot, 2022. "On the relationship between p-dominance and stochastic stability in network games," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(2), pages 307-351, June.
    • Handle: RePEc:spr:jogath:v:51:y:2022:i:2:d:10.1007_s00182-021-00794-w
    DOI: 10.1007/s00182-021-00794-w
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    Cited by:

    1. Daniel C. Opolot & Théophile T. Azomahou, 2021. "Strategic diffusion in networks through contagion," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 995-1027, July.

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    More about this item

    Keywords

    Evolutionary dynamics; Stochastic stability; Networks; p-best response set; Contagion threshold;
    All these keywords.

    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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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