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Learning, local interaction, and coordination. (English) Zbl 0802.90143

Summary: This paper discusses the dynamic implications of learning in a large population coordination game, focusing on the structure of the matching process which describes how players meet. As in a paper of M. Kandori, G. Mailath and R. Rob [Econometrica 61, No. 1, 29- 56 (1993; Zbl 0776.90095)] a combination of experimentation and myopia creates “evolutionary” forces which lead players to coordinate on the risk dominant equilibrium. To describe play with finite time horizons it is necessary to consider the rates at which the dynamic systems converge. In large populations with uniform matching, play is determined largely by historical factors. In contrast, when players interact with small sets of neighbors it is more reasonable to assume that evolutionary forces may determine the outcome.

MSC:

91A40 Other game-theoretic models
91E40 Memory and learning in psychology

Citations:

Zbl 0776.90095
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