Imitation and Experimentation in a Changing Environment
AbstractThis paper analyzes the equilibrium play in a random matching model with a changing environment. Under myopic decision making, players adopt imitation strategies similar to those observed in evolutionary models with sampling from past play in the population. If the players are patient, equilibrium strategies display elements of experimentation in addition to imitation. If the changes in the environment are infrequent enough, these strategies succeed in coordinating almost all of the players on the dominant action almost all of the time. The myopic rules, on the other hand, result in mis-coordination for a positive fraction of time.
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 Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1275.
Date of creation: Oct 1999
Date of revision:
Contact details of provider:
Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014
Web page: http://www.kellogg.northwestern.edu/research/math/
More information through EDIRC
Find related papers by JEL classification:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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.:
- Hofbauer, Josef & Weibull, Jorgen W., 1996.
"Evolutionary Selection against Dominated Strategies,"
Journal of Economic Theory,
Elsevier, vol. 71(2), pages 558-573, November.
- J. Hofbauer & J. Weibull, 2010. "Evolutionary Selection against dominated strategies," Levine's Working Paper Archive 444, David K. Levine.
- Hofbauer, Josef & Weibull, Jörgen W., 1995. "Evolutionary Selection against Dominated Strategies," Working Paper Series 433, Research Institute of Industrial Economics.
- Hofbauer, Josef & Weibull, Jîrgen W., 1995. "Evolutionary selection against dominated strategies," CEPREMAP Working Papers (Couverture Orange) 9506, CEPREMAP.
- RUSTICHINI, Aldo & WOLINSKY , Asher, 1993.
"Learning about Variable Demand in the Long Run,"
CORE Discussion Papers
1993017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Godfrey Keller & Sven Rady, 1997.
"Optimal Experimentation in a Changing Environment,"
STICERD - Theoretical Economics Paper Series
/1997/333, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- 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.
- 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, 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.
- Giuseppe Moscarin & Marco Ottaviani & Lones Smith, .
"Social Learning in a Changing World,"
ELSE working papers
010, ESRC Centre on Economics Learning and Social Evolution.
- Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-66, May.
- 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.
- Boylan, Richard T., 1992. "Laws of large numbers for dynamical systems with randomly matched individuals," Journal of Economic Theory, Elsevier, vol. 57(2), pages 473-504, August.
- Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, December.
- Smith, L. & Sorensen, P., 1996.
"Pathological Outcomes of Observational Learning,"
115, Economics Group, Nuffield College, University of Oxford.
- Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fran Walker).
If references are entirely missing, you can add them using this form.