Imitation, local interaction, and efficiency: reappraisal
We revisit the model of Alos-Ferrer and Weidenholzer (2006) but under the assumption that risk-dominant equilibria are Pareto efficient. It is found that risk-dominant equilibria, non-risk-dominant equilibria, and some non-monomorphic states can emerge in the long run when players interact with their immediate neighbors only.
Volume (Year): 32 (2012)
Issue (Month): 1 ()
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