Equilibrium selection in coordination games with simultaneous play

Economic Theory - Tập 20 - Trang 793-807 - 2002
Per Svejstrup Hansen1, Oddvar M. Kaarbøe2
1Unit of Economics, The Royal Veterinary and Agricultural University, Frederiksberg, DENMARK(e-mail: [email protected]) , , DK
2Department of Economics and HEB, University of Bergen, Fosswinckelsgate 6,5007 Bergen, NORWAY (e-mail: [email protected]) , , NO

Tóm tắt

We apply the dynamic stochastic framework proposed in recent evolutionary literature to a class of coordination games played simultaneously by the entire population. In these games payoffs, and hence best replies, are determined by a summary statistic of the population strategy profile. We demonstrate that with simultaneous play, the equilibrium selection depends crucially on how best responses to the summary statistic remain piece-wise constant. In fact, all the strict Nash equilibria in the underlying stage game can be made stochastically stable depending on how the best response mapping generates piece-wise constant best responses.