When does immigration facilitate efficiency?
This paper adds to the growing literature on stochastic evolutionary models. These models can be characterised by small probability shocks or mutations which perturb the system away from its deterministic evolution, allowing it to move between equilibria over a long period of time. Much of the literature has concentrated on the result that, in the limit as the mutation rate approaches zero, the stationary distribution becomes concentrated on the risk-dominant equilibrium because it is easier to flow into. However, it has been shown that in models of local interaction, allowing player movement eases the flow into the efficient equilibrium. This paper looks at the consequences of such player movement when there are capacity constraints which limit the number of agents who can reside at each location. The system may then settle into a mixed state in which different locations coordinate on different equilibria.
|Date of creation:||Mar 1999|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.econ.ed.ac.uk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:edn:esedps:40. 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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.