Contagion through Learning
We study learning in a large class of complete information normal form games. Players continually face new strategic situations and must form beliefs by extrapolation from similar past situations. We characterize the long-run outcomes of learning in terms of iterated dominance in a related incomplete information game with subjective priors. The use of extrapolations in learning may generate contagion of actions across games even if players learn only from games with payoffs very close to the current ones. Contagion may lead to unique long-run outcomes where multiplicity would occur if players learned through repeatedly playing the same game. The process of contagion through learning is formally related to contagion in global games, although the outcomes generally differ.
|Date of creation:||01 Dec 2006|
|Date of revision:||10 Aug 2007|
|Contact details of provider:|| Postal: |
Web page: http://www.econ.ed.ac.uk/
More information through EDIRC
References listed on IDEAS
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.:
- Dekel, Eddie & Fudenberg, Drew & Levine, David K., 2004.
"Learning to play Bayesian games,"
Games and Economic Behavior,
Elsevier, vol. 46(2), pages 282-303, February.
- Eddie Dekel & Drew Fudenberg & David K. Levine, 2000. "Learning to Play Bayesian Games," Discussion Papers 1322, Northwestern University, Center for Mathematical Studies in Economics and Management Science, revised Jul 2001.
- Eddie Dekel & Drew Fudenberg & David K. Levine, 2001. "Learning to Play Bayesian Games," Harvard Institute of Economic Research Working Papers 1926, Harvard - Institute of Economic Research.
- Dekel, Eddie & Fudenberg, Drew & Levine, David, 2004. "Learning to Play Bayesian Games," Scholarly Articles 3200612, Harvard University Department of Economics.
- Eddie Dekel & Drew Fudenberg & David K Levine, 2002. "Learning to Play Bayesian Games," Levine's Working Paper Archive 625018000000000151, David K. Levine.
- Beggs Alan, 2009.
"Learning in Bayesian Games with Binary Actions,"
The B.E. Journal of Theoretical Economics,
De Gruyter, vol. 9(1), pages 1-30, September.
- LiCalzi Marco, 1995.
"Fictitious Play by Cases,"
Games and Economic Behavior,
Elsevier, vol. 11(1), pages 64-89, October.
- Antoine Billot & Itzhak Gilboa & Dov Samet & David Schmeidler, 2004.
"Probabilities as Similarity-Weighted Frequencies,"
122247000000000696, UCLA Department of Economics.
- Philippe Jehiel & Frederic Koessler, 2005.
"Revisiting Games of Incomplete Information with Analogy-Based Expectations,"
THEMA Working Papers
2005-04, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Jehiel, Philippe & Koessler, Frédéric, 2008. "Revisiting games of incomplete information with analogy-based expectations," Games and Economic Behavior, Elsevier, vol. 62(2), pages 533-557, March.
- Philippe Jehiel & Frédéric Koessler, 2006. "Revisiting Games of Incomplete Information with Analogy-Based Expectations," Levine's Bibliography 122247000000000252, UCLA Department of Economics.
- Samuelson, L. & Zhang, J., 1990.
"Evolutionary Stability In Symmetric Games,"
90-24, Wisconsin Madison - Social Systems.
- Nachbar, J H, 1990. ""Evolutionary" Selection Dynamics in Games: Convergence and Limit Properties," International Journal of Game Theory, Springer, vol. 19(1), pages 59-89.
- Aviad Heifetz & Chris Shannon & Yossi Spiegel, 2005.
"The Dynamic Evolution of Preferences,"
1415, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Carlsson, H. & van Damme, E.E.C., 1993.
"Global games and equilibrium selection,"
Other publications TiSEM
49a54f00-dcec-4fc1-9488-4, Tilburg University, School of Economics and Management.
- Hans Carlsson & Eric van Damme, 1993. "Global Games and Equilibrium Selection," Levine's Working Paper Archive 122247000000001088, David K. Levine.
- Carlsson, H. & van Damme, E.E.C., 1990. "Global games and equilibrium selection," Discussion Paper 1990-52, Tilburg University, Center for Economic Research.
- Carlsson, H. & Van Damme, E., 1990. "Global Games And Equilibrium Selection," Papers 9052, Tilburg - Center for Economic Research.
- Rossella Argenziano & Itzhak Gilboa, 2012. "History as a coordination device," Theory and Decision, Springer, vol. 73(4), pages 501-512, October.
- Fabrizio Germano, 2004. "Stochastic evolution of rules for playing normal form games," Economics Working Papers 761, Department of Economics and Business, Universitat Pompeu Fabra.
- Mengel, Friederike, 2012.
"Learning across games,"
Games and Economic Behavior,
Elsevier, vol. 74(2), pages 601-619.
- Milgrom, Paul & Roberts, John, 1990. "Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities," Econometrica, Econometric Society, vol. 58(6), pages 1255-77, November.
- Jakub Steiner & Colin Stewart, 2007. "Learning by Similarity in Coordination Problems," CERGE-EI Working Papers wp324, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Jonathan Weinstein & Muhamet Yildiz, 2007. "A Structure Theorem for Rationalizability with Application to Robust Predictions of Refinements," Econometrica, Econometric Society, vol. 75(2), pages 365-400, 03.
- Samuelson, Larry & Zhang, Jianbo, 1992. "Evolutionary stability in asymmetric games," Journal of Economic Theory, Elsevier, vol. 57(2), pages 363-391, August.
When requesting a correction, please mention this item's handle: RePEc:edn:esedps:151. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gina Reddie)
If references are entirely missing, you can add them using this form.