Cooperation as a Result of Learning with Aspiration Levels
AbstractIt is shown that a win-stay, lose-hift behavior rule with endogenous aspiration levels yields cooperation in a certain class of games. The aspiration level in each round equals the current population average. The class of games includes the prisoner's dilemma and Cournot oligopoly and thus yields an explanation for cooperation and collusion.
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.
Bibliographic InfoPaper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse8_2001.
Date of creation: Feb 2001
Date of revision:
Contact details of provider:
Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de
Other versions of this item:
- Oechssler, Jorg, 2002. "Cooperation as a result of learning with aspiration levels," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 405-409, November.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-04-21 (All new papers)
- NEP-EVO-2001-04-21 (Evolutionary Economics)
- NEP-GTH-2001-04-21 (Game Theory)
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.:
- Karl H. Schlag, 1995.
"Why Imitate, and if so, How? A Bounded Rational Approach to Multi-Armed Bandits,"
Discussion Paper Serie B
361, University of Bonn, Germany, revised Mar 1996.
- Schlag, Karl H., 1998. "Why Imitate, and If So, How?, : A Boundedly Rational Approach to Multi-armed Bandits," Journal of Economic Theory, Elsevier, vol. 78(1), pages 130-156, January.
- Karl H. Schlag, . "Why Imitate, and if so, How? A Bounded Rational Approach to Multi- Armed Bandits," ELSE working papers 028, ESRC Centre on Economics Learning and Social Evolution.
- K. Schlag, 2010.
"Why Imitate, and if so, How? Exploring a Model of Social Evolution,"
Levine's Working Paper Archive
454, David K. Levine.
- Schlag, Karl H., 1994. "Why Imitate, and if so, How? Exploring a Model of Social Evolution," Discussion Paper Serie B 296, University of Bonn, Germany.
- Kandori, M. & Mailath, G.J., 1991.
"Learning, Mutation, And Long Run Equilibria In Games,"
71, Princeton, Woodrow Wilson School - John M. Olin Program.
- 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.
- M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
- Fernando Vega-Redondo, 1997.
"The Evolution of Walrasian Behavior,"
Econometric Society, vol. 65(2), pages 375-384, March.
- Tilman B�rgers & Rajiv Sarin, .
"Naive Reinforcement Learning With Endogenous Aspiration,"
ELSE working papers
037, ESRC Centre on Economics Learning and Social Evolution.
- Borgers, Tilman & Sarin, Rajiv, 2000. "Naive Reinforcement Learning with Endogenous Aspirations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(4), pages 921-50, November.
- T. Borgers & R. Sarin, 2010. "Naïve Reinforcement Learning With Endogenous Aspirations," Levine's Working Paper Archive 381, David K. Levine.
- Dixon, Huw David, 2000. "Keeping up with the Joneses: competition and the evolution of collusion," Journal of Economic Behavior & Organization, Elsevier, vol. 43(2), pages 223-238, October.
- Karandikar, Rajeeva & Mookherjee, Dilip & Ray, Debraj & Vega-Redondo, Fernando, 1998.
"Evolving Aspirations and Cooperation,"
Journal of Economic Theory,
Elsevier, vol. 80(2), pages 292-331, June.
- M. Posch & A. Pichler & K. Sigmund, 1998. "The Efficiency of Adapting Aspiration Levels," Working Papers ir98103, International Institute for Applied Systems Analysis.
- Carlo Altavilla & Luigi Luini & Patrizia Sbriglia, 2005.
"Social Learning in Market Games,"
Labsi Experimental Economics Laboratory University of Siena
003, University of Siena.
- Arieli, Itai & Babichenko, Yakov, 2012. "Average testing and Pareto efficiency," Journal of Economic Theory, Elsevier, vol. 147(6), pages 2376-2398.
- Mark Armstrong & Steffen Huck, 2010.
"Behavioral Economics as Applied to Firms: A Primer,"
Competition Policy International, vol. 6.
- Mark Armstrong & Steffen Huck, 2011. "Behavioral Economics as Applied to Firms: A Primer," Antitrust Chronicle, Competition Policy International, vol. 1.
- Mark Armstrong & Steffen Huck, 2010. "Behavioral Economics as Applied to Firms: A Primer," CESifo Working Paper Series 2937, CESifo Group Munich.
- Armstrong, Mark & Huck, Steffen, 2010. "Behavioral economics as applied to firms: a primer," MPRA Paper 20356, University Library of Munich, Germany.
- MacLeod, W. Bentley & Pingle, Mark, 2005. "Aspiration uncertainty: its impact on decision performance and process," Journal of Economic Behavior & Organization, Elsevier, vol. 56(4), pages 617-629, April.
- Robert S. Gazzale, 2009. "Learning to Play Nash from the Best," Department of Economics Working Papers 2009-03, Department of Economics, Williams College.
- Carlos Alós-Ferrer, 2001.
"Cournot versus Walras in Dynamic Oligopolies with Memory,"
Vienna Economics Papers
0110, University of Vienna, Department of Economics.
- Alos-Ferrer, Carlos, 2004. "Cournot versus Walras in dynamic oligopolies with memory," International Journal of Industrial Organization, Elsevier, vol. 22(2), pages 193-217, February.
- Golosnoy, Vasyl & Okhrin, Yarema, 2008. "General uncertainty in portfolio selection: A case-based decision approach," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 718-734, September.
- Miklós Antal & Ardjan Gazheli & Jeroen van den Bergh, 2012. "Behavioral Foundations of Sustainability Transitions," WWWforEurope Working Papers series 3, WWWforEurope.
- Steffen Huck & Brian Wallace, 2002. "Reciprocal strategies and aspiration levels in a Cournot-Stackelberg experiment," Economics Bulletin, AccessEcon, vol. 3(3), pages 1-7.
- Steffen Huck & Philippe Jehiel, 2004. "Public statistics and private experience : Varying feedback information in a take or pass game," Levine's Bibliography 122247000000000733, UCLA Department of Economics.
- repec:ebl:ecbull:v:3:y:2002:i:3:p:1-7 is not listed on IDEAS
- Dixon, Huw D. & Sbriglia, Patrizia & Somma, Ernesto, 2006. "Learning to collude: An experiment in convergence and equilibrium selection in oligopoly," Research in Economics, Elsevier, vol. 60(3), pages 155-167, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (BGSE Office).
If references are entirely missing, you can add them using this form.