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Network Formation with Adaptive Agents

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  • Schuster, Stephan

Abstract

In this paper, a reinforcement learning version of the connections game first analysed by Jackson and Wolinsky is presented and compared with benchmark results of fully informed and rational players. Using an agent-based simulation approach, the main nding is that the pattern of reinforcement learning process is similar, but does not fully converge to the benchmark results. Before these optimal results can be discovered in a learning process, agents often get locked in a state of random switching or early lock-in.

Suggested Citation

  • Schuster, Stephan, 2010. "Network Formation with Adaptive Agents," MPRA Paper 27388, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27388
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    File URL: https://mpra.ub.uni-muenchen.de/27388/1/MPRA_paper_27388.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    agent-based computational economics; strategic network formation; network games; reinforcement learning;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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