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The Stability of conventions: random and lattice matching networks compared

By Edward Cartwright


We consider the stability of the risk-dominant equilibrium in a two-strategy coordination game when players behave myopically. The case of a lattice matching network is compared to that of a random network. We demonstrate that the risk-dominant equilibrium is unstable given a lattice network and stable given a random network

Topics: H
Publisher: Economics Letters
Year: 2004
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