Network Formation with Adaptive Agents
AbstractIn this paper, a reinforcement learning version of the connections game first analysed by Jackson and Wolinsky is presented and compared with benchmark results of fully informed and rational players. Using an agent-based simulation approach, the main nding is that the pattern of reinforcement learning process is similar, but does not fully converge to the benchmark results. Before these optimal results can be discovered in a learning process, agents often get locked in a state of random switching or early lock-in.
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 Library of Munich, Germany in its series MPRA Paper with number 27388.
Date of creation: 2010
Date of revision:
agent-based computational economics; strategic network formation; network games; reinforcement learning;
Find related papers by JEL classification:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-23 (All new papers)
- NEP-CBE-2010-12-23 (Cognitive & Behavioural Economics)
- NEP-CMP-2010-12-23 (Computational Economics)
- NEP-CSE-2010-12-23 (Economics of Strategic Management)
- NEP-EVO-2010-12-23 (Evolutionary Economics)
- NEP-GTH-2010-12-23 (Game Theory)
- NEP-NET-2010-12-23 (Network Economics)
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.:
- Mookherjee, Dilip & Sopher, Barry, 1997.
"Learning and Decision Costs in Experimental Constant Sum Games,"
Games and Economic Behavior,
Elsevier, vol. 19(1), pages 97-132, April.
- Barry Sopher & Dilip Mookherjee, 2000. "Learning and Decision Costs in Experimental Constant Sum Games," Departmental Working Papers 199625, Rutgers University, Department of Economics.
- Barry Sopher & Dilip Mookherjee, 1997. "Learning and Decision Costs in Experimental Constant Sum Games," Departmental Working Papers 199527, Rutgers University, Department of Economics.
- Deroian, Frederic, 2003. "Farsighted strategies in the formation of a communication network," Economics Letters, Elsevier, vol. 80(3), pages 343-349, September.
- Borgers, Tilman & Sarin, Rajiv, 1997.
"Learning Through Reinforcement and Replicator Dynamics,"
Journal of Economic Theory,
Elsevier, vol. 77(1), pages 1-14, November.
- T. Borgers & R. Sarin, 2010. "Learning Through Reinforcement and Replicator Dynamics," Levine's Working Paper Archive 380, David K. Levine.
- Tilman B�rgers & Rajiv Sarin, . "Learning Through Reinforcement and Replicator Dynamics," ELSE working papers 051, ESRC Centre on Economics Learning and Social Evolution.
- Sanjeev Goyal, 2003. "Learning in Networks: a survey," Economics Discussion Papers 563, University of Essex, Department of Economics.
- Laslier, J.-F. & Topol, R. & Walliser, B., 1999.
"A Behavioral Learning Process in Games,"
99-03, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Ed Hopkins & Martin Posch, 2003.
"Attainability of Boundary Points under Reinforcement Learning,"
Levine's Working Paper Archive
506439000000000350, David K. Levine.
- Hopkins, Ed & Posch, Martin, 2005. "Attainability of boundary points under reinforcement learning," Games and Economic Behavior, Elsevier, vol. 53(1), pages 110-125, October.
- Ed Hopkins & Martin Posch, 2004. "Attainability of Boundary Points under Reinforcement Learning," ESE Discussion Papers 79, Edinburgh School of Economics, University of Edinburgh.
- Matthew O. Jackson & Asher Wolinsky, 1994.
"A Strategic Model of Social and Economic Networks,"
1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dutta, Bhaskar & Mutuswami, Suresh, 1996.
971, California Institute of Technology, Division of the Humanities and Social Sciences.
- Alan Beggs, 2002.
"On the Convergence of Reinforcement Learning,"
Economics Series Working Papers
96, University of Oxford, Department of Economics.
- Pemantle, Robin & Skyrms, Brian, 2004. "Network formation by reinforcement learning: the long and medium run," Mathematical Social Sciences, Elsevier, vol. 48(3), pages 315-327, November.
- Yan Chen & Fang-Fang Tang, 1998. "Learning and Incentive-Compatible Mechanisms for Public Goods Provision: An Experimental Study," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 633-662, June.
- Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003.
"Network Formation with Heterogeneous Players,"
Economics Discussion Papers
562, University of Essex, Department of Economics.
- Jackson, Matthew O. & Watts, Alison, 2002.
"The Evolution of Social and Economic Networks,"
Journal of Economic Theory,
Elsevier, vol. 106(2), pages 265-295, October.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Izquierdo, Luis R. & Izquierdo, Segismundo S. & Gotts, Nicholas M. & Polhill, J. Gary, 2007. "Transient and asymptotic dynamics of reinforcement learning in games," Games and Economic Behavior, Elsevier, vol. 61(2), pages 259-276, November.
- Arthur, W Brian, 1993. "On Designing Economic Agents That Behave Like Human Agents," Journal of Evolutionary Economics, Springer, vol. 3(1), pages 1-22, February.
- Nicolas Querou & Sylvain Beal, 2006.
"Bounded Rationality and Repeated Network Formation,"
2006.74, Fondazione Eni Enrico Mattei.
- Beal, Sylvain & Querou, Nicolas, 2007. "Bounded rationality and repeated network formation," Mathematical Social Sciences, Elsevier, vol. 54(1), pages 71-89, July.
- Ho, Teck H. & Camerer, Colin F. & Chong, Juin-Kuan, 2007. "Self-tuning experience weighted attraction learning in games," Journal of Economic Theory, Elsevier, vol. 133(1), pages 177-198, March.
- A. Roth & I. Er’ev, 2010. "Learning in Extensive Form Games: Experimental Data and Simple Dynamic Models in the Intermediate Run," Levine's Working Paper Archive 387, David K. Levine.
- McBride, Michael, 2006. "Imperfect monitoring in communication networks," Journal of Economic Theory, Elsevier, vol. 126(1), pages 97-119, January.
- Chen, Yan & Khoroshilov, Yuri, 2003. "Learning under limited information," Games and Economic Behavior, Elsevier, vol. 44(1), pages 1-25, July.
- Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September.
- Sarin, Rajiv & Vahid, Farshid, 1999. "Payoff Assessments without Probabilities: A Simple Dynamic Model of Choice," Games and Economic Behavior, Elsevier, vol. 28(2), pages 294-309, August.
- Watts, Alison, 2001. "A Dynamic Model of Network Formation," Games and Economic Behavior, Elsevier, vol. 34(2), pages 331-341, February.
- Colin Camerer & Teck-Hua Ho, 1999. "Experience-weighted Attraction Learning in Normal Form Games," Econometrica, Econometric Society, vol. 67(4), pages 827-874, July.
- Debraj Ray & Dilip Mookherjee & Fernando Vega Redondo & Rajeeva L. Karandikar, 1996.
"Evolving aspirations and cooperation,"
Working Papers. Serie AD
1996-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Watts, Alison, 2002. "Non-myopic formation of circle networks," Economics Letters, Elsevier, vol. 74(2), pages 277-282, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.