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Neural Networks and Contagion

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  • Berninghaus, Siegfried K.

    ()
    (Universität Karlsruhe)

  • Haller, Hans

    ()
    (Department of Economics, Virginia Polytechnic Institute and State University)

  • Outkin, Alexander

    ()
    (Decision Applications Division, Los Alamos National Laboratory)

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    Abstract

    We analyze local as well as global interaction and contagion in population games, using the formalism of neural networks. In contrast to much of the literature, a state encodes not only the frequency of play, but also the spatial pattern of play. Stochastic best response dynamics with logistic noise gives rise to a log-linear or logit response model. The stationary distribution is of the Gibbs-Boltzmann type. The long-run equilibria are the maxima of a potential function.

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    Bibliographic Info

    Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 05-35.

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    Length: 22 pages
    Date of creation: 22 Oct 2005
    Date of revision:
    Handle: RePEc:xrs:sfbmaa:05-35

    Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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