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Evolution and Information in a Prisoner's Dilemma Game

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Author Info

  • Phillip Johnson

    (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

  • David K. Levine

    (Department of Economics, UCLA)

  • Wolfgang Pesendorfer

    (Department of Economics, Princeton University)

Abstract

In an environment of anonymous random matching, Kandori [1992] showed that with a sufficiently rich class of simple information systems the folk theorem holds. We specialize to the Prisoner's Dilemma and examine the stochastic stability of a process of learning and evolution in this setting. If the benefit of future cooperation is too small, then there is no cooperation. When the benefit of cooperation is large then only cooperation will survive in the very long run.

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Bibliographic Info

Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 9805.

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Length: 35 pages
Date of creation: Feb 1998
Date of revision:
Handle: RePEc:cie:wpaper:9805

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References

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  1. Kandori, M. & Mailath, G.J., 1991. "Learning, Mutation, And Long Run Equilibria In Games," Papers 71, Princeton, Woodrow Wilson School - John M. Olin Program.
  2. D. Fudenberg & D. M. Kreps & E. Maskin, 1998. "Repeated Games with Long-run and Short-run Players," Levine's Working Paper Archive 608, David K. Levine.
  3. Michi Kandori, 2010. "Social Norms and Community Enforcement," Levine's Working Paper Archive 630, David K. Levine.
  4. Drew Fudenberg & David K. Levine, 1998. "Learning in Games," Levine's Working Paper Archive 2222, David K. Levine.
  5. Fudenberg, Drew & Levine, David K., 1995. "Consistency and cautious fictitious play," Journal of Economic Dynamics and Control, Elsevier, vol. 19(5-7), pages 1065-1089.
  6. Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, vol. 39(1), pages 83-96, June.
  7. Bergin, James & Lipman, Barton L, 1996. "Evolution with State-Dependent Mutations," Econometrica, Econometric Society, vol. 64(4), pages 943-56, July.
  8. Ellison, Glenn, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 567-88, July.
  9. Dov Monderer & Dov Samet & Aner Sela, 1994. "Belief Affirming in Learning Processes," Game Theory and Information 9408002, EconWPA, revised 11 Aug 1994.
  10. S. Morris & R. Rob & H. Shin, 2010. "p-dominance and Belief Potential," Levine's Working Paper Archive 505, David K. Levine.
  11. Peyton Young & Dean Foster, 2010. "Cooperation in the Short and in the Long Run," Levine's Working Paper Archive 494, David K. Levine.
  12. Drew Fudenberg & David K. Levine, 2009. "Learning and Equilibrium," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 385-420, 05.
  13. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
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