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Equilibrium Selection in Supermodular Games with Mean Payoff Technologies

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Author Info
Burkhard Hehenkamp
Oddvar Kaarbøe

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Abstract

We examine an evolutionary model of equilibrium selection, where all individuals interact w ith each other, recurrently playing a strictly supermodular game. Individuals play (myopic)\best responses to the current population profile, occasionally they pick an arbitrary strategy at random. To address the robustness of equilibrium selection in this simultaneous play senario, we investigate whether different best-response approximations can lead to different long run equilibria.

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Paper provided by University of Dortmund, Department of Economics in its series Discussion Papers in Economics with number 04_05.

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Length: 22 pages
Date of creation: Nov 2004
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Handle: RePEc:mik:wpaper:04_05

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  1. Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-66, September. [Downloadable!] (restricted)
  2. Robles, Jack, 1997. "Evolution and Long Run Equilibria in Coordination Games with Summary Statistic Payoff Technologies," Journal of Economic Theory, Elsevier, vol. 75(1), pages 180-193, July. [Downloadable!] (restricted)
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  3. Kandori Michihiro & Rob Rafael, 1995. "Evolution of Equilibria in the Long Run: A General Theory and Applications," Journal of Economic Theory, Elsevier, vol. 65(2), pages 383-414, April. [Downloadable!] (restricted)
  4. Vincent P. Crawford, 1995. "Theory and Experiment in the Analysis of Strategic Interaction," University of California at San Diego, Economics Working Paper Series 95-37, Department of Economics, UC San Diego.
  5. Cooper, Russell & Haltiwanger, John, 1996. "Evidence on Macroeconomic Complementarities," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 78-93, February. [Downloadable!] (restricted)
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  6. Vives, Xavier, 1990. "Nash equilibrium with strategic complementarities," Journal of Mathematical Economics, Elsevier, vol. 19(3), pages 305-321. [Downloadable!] (restricted)
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  7. Vincent P. Crawford, 1990. "An 'Evolutionary' Interpretation of Van Huyck, Battalio, and Beil's Experimental Results on Coordination," University of California at San Diego, Economics Working Paper Series 89-28r, Department of Economics, UC San Diego.
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  8. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January. [Downloadable!] (restricted)
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