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Neural Networks and Contagion

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Author Info
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)
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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Publisher 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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