Large Deviations and Equilibrium Selection in Large Populations
AbstractThis paper uses the theory of large deviations to analyse equilibrium selection in one-dimensional games with large populations where the system evolves according to a jump Markov process. The equilibria selected maximise a quasi-potential function which can be determined by solving a polynomial equation. Estimates of waiting times are also given. It shows that equilibria about which there is more noise are less likely to be selected and clarifies the role of the limiting deterministic dynamic in selection.
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 Oxford, Department of Economics in its series Economics Series Working Papers with number 129.
Date of creation: 01 Nov 2002
Date of revision:
equilibrum selection; large deviations; large populations; games;
Other versions of this item:
- Beggs, A.W., 2007. "Large deviations and equilibrium selection in large populations," Journal of Economic Theory, Elsevier, vol. 132(1), pages 383-410, January.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
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.:
- Bergin, James & Lipman, Barton L, 1996.
"Evolution with State-Dependent Mutations,"
Econometric Society, vol. 64(4), pages 943-56, July.
- J. Bergin & B. Lipman, 2010. "Evolution with State-Dependent Mutations," Levine's Working Paper Archive 486, David K. Levine.
- BERGIN, James & LIPMAN, Bart, 1994. "Evolution with State-Dependent Mutations," CORE Discussion Papers 1994055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- J Bergin & B L Lipman, 1997. "Evolution with state-dependent Mutations," Levine's Working Paper Archive 771, David K. Levine.
- Alan Beggs, 2005.
"Waiting times and equilibrium selection,"
Springer, vol. 25(3), pages 599-628, 04.
- K. Binmore & L. Samuelson & K. Vaughn, 2010. "Musical Chairs: Modelling Noisy Evolution," Levine's Working Paper Archive 487, David K. Levine.
- Fudenberg, D. & Kreps, D.M., 1992.
"Learning Mixed Equilibria,"
92-13, Massachusetts Institute of Technology (MIT), Department of Economics.
- Fudenberg, Drew & Harris, Christopher, 1992.
"Evolutionary Dynamics with Aggregate Shocks,"
IDEI Working Papers
13, Institut d'Économie Industrielle (IDEI), Toulouse.
- Benaim, Michel & Weibull, Jörgen W., 2000.
"Deterministic Approximation of Stochastic Evolution in Games,"
Working Paper Series
534, Research Institute of Industrial Economics, revised 30 Oct 2001.
- Michel BenaÔm & J–rgen W. Weibull, 2003. "Deterministic Approximation of Stochastic Evolution in Games," Econometrica, Econometric Society, vol. 71(3), pages 873-903, 05.
- Alan Beggs, 2000.
"Stochastic Evolution with Slow Learning,"
Economics Series Working Papers
33, University of Oxford, Department of Economics.
- D. Foster & P. Young, 2010. "Stochastic Evolutionary Game Dynamics," Levine's Working Paper Archive 493, David K. Levine.
- F. Biesmans, 1977. "A Survey," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 48(1), pages 5-36, 01.
- P. Diamond, 1980.
"Aggregate Demand Management in Search Equilibrium,"
268, Massachusetts Institute of Technology (MIT), Department of Economics.
- Binmore, Ken & Samuelson, Larry, 1997. "Muddling Through: Noisy Equilibrium Selection," Journal of Economic Theory, Elsevier, vol. 74(2), pages 235-265, June.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- P. Young, 1999. "The Evolution of Conventions," Levine's Working Paper Archive 485, David K. Levine.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Wise).
If references are entirely missing, you can add them using this form.