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Many real-world conflicts are to some extent determined randomly by noise. The way in which noise is modeled in contest success functions (CSFs) has important implications both for the possibility of forming cooperative relationships as well as for the features of such relationships. In a...
Persistent link: https://www.econbiz.de/10014034110
We show that local potential maximizer (\cite{morris+05}) with constant weights is stochastically stable in the log-linear dynamics provided that the payoff function or the associated local potential function is supermodular. We illustrate and discuss, through a series of examples, the use of...
Persistent link: https://www.econbiz.de/10003894726
Saez-Marti and Weibull [4] investigate the consequences of letting some agents play a myopic best reply to the myopic best reply in Young's [8] bargaining model. This is how they introduce "cleverness" of players. We analyze such clever agents in general finite two-player games. We show that...
Persistent link: https://www.econbiz.de/10009502714
The bargaining model with stochastic order of proposing players is properly embedded in continuous time and it is strategically equivalent to the alternating offers model. For all parameter values, the pair of equilibrium proposals corresponds to the Nash bargaining solution of a modified...
Persistent link: https://www.econbiz.de/10011343950
We study strategic negotiation models featuring costless delay, general recognition procedures, endogenous voting orders, and finite sets of alternatives. Two examples show: 1. non-existence of stationary subgame-perfect equilibrium (SSPE). 2. the recursive equations and optimality conditions...
Persistent link: https://www.econbiz.de/10010477115
In Young (1993, 1998) agents are recurrently matched to play a finite game and almost always play a myopic best reply to a frequency distribution based on a sample from the recent history of play. He proves that in a generic class of finite n-player games, as the mutation rate tends to zero,...
Persistent link: https://www.econbiz.de/10001600008
In this paper, I analyze stochastic adaptation in finite n-player games played by heterogeneous populations of myopic best repliers, better repliers and imitators. In each period, one individual from each of n populations, one for each player role, is drawn to play and chooses a pure strategy...
Persistent link: https://www.econbiz.de/10001622442
We study perfect information games with an infinite horizon played by an arbitrary number of players. This class of games includes infinitely repeated perfect information games, repeated games with asynchronous moves, games with long and short run players, games with overlapping generations of...
Persistent link: https://www.econbiz.de/10013098365
This paper studies infinite-horizon stochastic games in which players observe actions and noisy public information about a hidden state each period. We find a general condition under which the feasible and individually rational payoff set is invariant to the initial prior about the state, when...
Persistent link: https://www.econbiz.de/10012937490
We study the pure-strategy subgame-perfect Nash equilibria of stochastic games with perfect monitoring, geometric discounting, and public randomization. Novel algorithms are developed for calculating the discounted payoffs that can be attained in equilibrium. We also provide implementations of...
Persistent link: https://www.econbiz.de/10012870499