Sophisticated Play by Idiosyncratic Agents.

Agents are drawn from a large population and matched to play a symmetric 2 x 2 coordination game, the payoffs of which are perturbed by agent-specific heterogeneity. Individuals observe a (possibly sampled) history of play, which forms the initial hypothesis for an opponent's behaviour. Using t...

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Main Authors: Myatt, D, Wallace, C
格式: Journal article
语言:English
出版: 2003
实物特征
总结:Agents are drawn from a large population and matched to play a symmetric 2 x 2 coordination game, the payoffs of which are perturbed by agent-specific heterogeneity. Individuals observe a (possibly sampled) history of play, which forms the initial hypothesis for an opponent's behaviour. Using this hypothesis as a starting point, the agents iteratively reason toward a Bayesian Nash equilibrium. When sampling is complete and the noise becomes vanishingly small, a single equilibrium is played almost all the time. A necessary and sufficient condition for selection, shown to be closely related (but not identical) to risk-dominance, is derived. When sampling is sufficiently incomplete, the risk-dominant equilibrium is played irrespective of the history observed.