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The Evolution of conventions with Mobile Players

  • Tone Dieckmann


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    This paper analyzes the evolution of conventions in a society with local interaction and mobile players. Three innovative aspects are introduced: Imperfect observability of play outside a player's home location, friction in the strategy adjustment process, and restriced mobility. It is shown that, if mobility is unrestriced, only efficient conventions are stochastichally stable. If there are barriers on mobility, the coexistence of different conventions can be observed. While imperfect observability and friction alone cannot revent society from reaching an overall efficient outcome, restricted mobility can.

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    Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n720897.

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    Date of creation: Aug 1997
    Date of revision:
    Handle: RePEc:may:mayecw:n720897
    Contact details of provider: Postal: Maynooth, Co. Kildare
    Phone: 353-1-7083728
    Fax: 353-1-7083934
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    1. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, June.
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    9. Arthur J Robson & Fernando Vega-Redondo, 1999. "Efficient Equilibrium Selection in Evolutionary Games with Random Matching," Levine's Working Paper Archive 2112, David K. Levine.
    10. Ellison, G., 1996. "Basins of Attraction, Long Run Equilibria, and the Speed of Step-by- Step Evolution," Working papers 96-4, Massachusetts Institute of Technology (MIT), Department of Economics.
    11. Boyer, Robert & Orlean, Andre, 1992. "How Do Conventions Evolve?," Journal of Evolutionary Economics, Springer, vol. 2(3), pages 165-77, October.
    12. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
    13. M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
    14. Berninghaus, Siegfried K. & Schwalbe, Ulrich, 1996. "Evolution, interaction, and Nash equilibria," Journal of Economic Behavior & Organization, Elsevier, vol. 29(1), pages 57-85, January.
    15. L. Blume, 2010. "The Statistical Mechanics of Strategic Interaction," Levine's Working Paper Archive 488, David K. Levine.
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