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Learning Purified Mixed Equilibria

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Author Info
Glenn Ellison
Drew Fudenberg

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Abstract

better understand when mixed equilibria might arise within populations of interact acting agents, we examine a model of smoothed fictitious play that is designed to capture Harsanyi's "Purification", view of mixed equilibria in a setting with a large population of agents. Our analysis concerns the local stability of equilibria when the degree of heterogeneity in the population is small. In 2 x 2 games our model is easy to analyze and yields the same conclusions as have previous models. Our primary focus is on 3 x 3 games where we provide a general characterization of which equilibria are locally stable, and discuss its implications in several particular cases. Among our conclusions are that learning can sometimes provide a justification for mixed equilibria outside of 2 x 2 games, that whether an equilibrium is stable or unstable is often dependent on the distribution of payoff heterogeneity in the population, that the totally mixed equilibria of zero sum games are generically stable, and that under a "balanced perturbation" condition the equilibria of symmetric games are generically unstable.

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Publisher Info
Paper provided by Harvard - Institute of Economic Research in its series Harvard Institute of Economic Research Working Papers with number 1817.

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Date of creation: 1998
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Handle: RePEc:fth:harver:1817

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  1. Michel Benaim & Josef Hofbauer & Ed Hopkins, 2005. "Learning in Games with Unstable Equilibria," Levine's Bibliography 784828000000000609, UCLA Department of Economics. [Downloadable!]
    Other versions:
  2. Jim Engle-Warnick & Ed Hopkins, 2006. "A Simple Test of Learning Theory?," ESE Discussion Papers 153, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
    Other versions:
  3. repec:att:wimass:1920321 is not listed on IDEAS
  4. repec:att:wimass:192005 is not listed on IDEAS
  5. N. Williams, 2002. "Stability and Long Run Equilibrium in Stochastic Fictitious Play," Princeton Economic Theory Working Papers cbeeeb49cc8afc83f125df5a8, David K. Levine. [Downloadable!]
  6. Ed Hopkins, 2004. "Two Competing Models of How People Learn in Games," ESE Discussion Papers 51, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
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  7. Josef Hofbauer & Ed Hopkins, 2004. "Learning in Perturbed Asymmetric Games," ESE Discussion Papers 53, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
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  8. Friederike Mengel, 2007. "Learning Across Games," Working Papers. Serie AD 2007-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  9. Nicole Marie Bouchez, 2001. "What Learning Models Tell Us to Expect in Three-by-Three Bimatrix Games," Royal Holloway, University of London: Discussion Papers in Economics 00/3, Department of Economics, Royal Holloway University of London, revised Feb 2001. [Downloadable!]
  10. Ed Hopkins & Martin Posch, 2003. "Attainability of Boundary Points under Reinforcement Learning," Levine's Bibliography 506439000000000350, UCLA Department of Economics. [Downloadable!]
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  11. Timothy N. Cason & Daniel Friedman & Ed Hopkins, 2009. "Testing the TASP: An Experimental Investigation of Learning in Games with Unstable Equilibria," ESE Discussion Papers 188, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
  12. Federico Echenique & Aaron Edlin, 2001. "Mixed Equilibria in Games of Strategic Complements are Unstable," Levine's Working Paper Archive 563824000000000161, David K. Levine. [Downloadable!]
    Other versions:
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