Partial bandwagon effects and local interactions. (English) Zbl 1271.91008

Summary: We consider partial bandwagon properties in the context of coordination games to capture the idea of weak network externalities. We then study a local interactions model where agents play a coordination game following a noisy best-reply process. We show that globally pairwise risk dominant strategies are selected in arbitrary \(3\times 3\) coordination games, but not necessarily in larger games. A comparison with the global interactions benchmark shows that the nature of interactions might alter the long-run results themselves, and not only the speed of convergence. We also illustrate that the simultaneous coexistence of conventions is possible for games with at least 5 strategies.


91A10 Noncooperative games
91A26 Rationality and learning in game theory
Full Text: DOI


[1] Alós-Ferrer, C., 2000. Learning, memory, and inertia. Working paper 0003. Department of Economics, University of Vienna
[2] Anderlini, L.; Ianni, A., Path dependence and learning from neighbors, Games econ. behav., 13, 141-177, (1996) · Zbl 0851.90148
[3] Ellison, G., Learning, local interaction, and coordination, Econometrica, 61, 1047-1071, (1993) · Zbl 0802.90143
[4] Ellison, G., Basins of attraction, long-run stochastic stability, and the speed of step-by-step evolution, Rev. econ. stud., 67, 17-45, (2000) · Zbl 0956.91027
[5] Freidlin, M.; Wentzell, A., Random perturbations of dynamical systems, (1988), Springer-Verlag New York
[6] Fudenberg, D.; Levine, D., The theory of learning in games, (1998), MIT Press Cambridge, MA
[7] Harsanyi, J.; Selten, R., A general theory of equilibrium selection in games, (1988), MIT Press Cambridge, MA · Zbl 0693.90098
[8] Ianni, A., Learning correlated equilibria in population games, Math. soc. sci., 42, 271-294, (2001) · Zbl 1037.91019
[9] Kandori, M.; Rob, R., Evolution of equilibria in the long run: A general theory and applications, J. econ. theory, 65, 383-414, (1995) · Zbl 0837.90139
[10] Kandori, M.; Rob, R., Bandwagon effects and long run technology choice, Games econ. behav., 22, 30-60, (1998) · Zbl 0892.90040
[11] Kandori, M.; Mailath, G.J.; Rob, R., Learning, mutation, and long run equilibria in games, Econometrica, 61, 29-56, (1993) · Zbl 0776.90095
[12] Karlin, S.; Taylor, H.M., A first course in stochastic processes, (1975), Academic Press San Diego · Zbl 0315.60016
[13] Mailath, G.; Samuelson, L.; Shaked, A., Correlated equilibria and local interactions, Econ. theory, 9, 551-556, (1997) · Zbl 0883.90129
[14] Maruta, T., On the relationship between risk-dominance and stochastic stability, Games econ. behav., 19, 2, 221-234, (1997)
[15] Morris, S.; Rob, R.; Shin, H., p-dominance and belief potential, Econometrica, 63, 145-157, (1995) · Zbl 0827.90138
[16] Samuelson, L., Stochastic stability in games with alternative best replies, J. econ. theory, 64, 35-65, (1994) · Zbl 0811.90138
[17] Samuelson, L., Evolutionary games and equilibrium selection, (1997), MIT Press Cambridge, MA · Zbl 0953.91500
[18] Sandholm, W.H., Simple and clever decision rules for a model of evolution, Econ. lett., 61, 165-170, (1998) · Zbl 0914.90280
[19] Young, P., The evolution of conventions, Econometrica, 61, 57-84, (1993) · Zbl 0773.90101
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.