2,769 research outputs found
Iterated Potential and Robustness of Equilibria
For any given set-valued solution concept, it is possible to consider iterative elimination of actions outside the solution set. This paper applies such a procedure to define the concept of iterated monotone potential maximizer (iterated MP-maximizer). It is shown that under some monotonicity conditions, an iterated MP-maximizer is robust to incomplete information (Kajii and Morris, Econometrica 65 (1997)) and absorbing and globally accessible under perfect foresight dynamics for a small friction (Matsui and Matsuyama, Journal of Economic Theory 65 (1995)). Several simple sufficient conditions under which a game has an iterated MP-maximizer are also provided
Nested potentials and robust equilibria
This paper introduces the notion of nested best-response potentials for complete in- formation games. It is shown that a unique maximizer of such a potential is a Nash equilibrium that is robust to incomplete information in the sense of Kajii and Morris (1997, mimeo).incomplete information, potential games, robustness, refinements
Nested potentials and robust equilibria
This paper introduces the notion of nested best response potentials for complete information games. It is shown that a unique maximizer of such a potential is a Nash equilibrium that is robust to incomplete information in the sense of Kajii and Morris (1997, mimeo).incomplete information, potential games, robustness, refinements
Equilibrium Selection Through Incomplete Information in Coordination Games: An Experimental Study
We perform an experiment on a pure coordination game with uncertainty about the payoffs. Our game is closely related to models that have been used in many macroeconomic and financial applications to solve problems of equilibrium indeterminacy.
In our experiment, each subject receives a noisy signal about the true payoffs.
This game (inspired by the “global” games of Carlsson and van Damme, Econometrica,
61, 989–1018, 1993) has a unique strategy profile that survives the iterative deletion of strictly dominated strategies (thus a unique Nash equilibrium). The equilibrium outcome coincides, on average, with the risk-dominant equilibrium outcome of the underlying coordination game. In the baseline game, the behavior of the subjects
converges to the theoretical prediction after enough experience has been gained.
The data (and the comments) suggest that this behavior can be explained by learning.
To test this hypothesis, we use a different game with incomplete information, related
to a complete information game where learning and prior experiments suggest a different
behavior. Indeed, in the second treatment, the behavior did not converge to equilibrium within 50 periods in some of the sessions.We also run both games under complete information. The results are sufficiently similar between complete and incomplete information to suggest that risk-dominance is also an important part of the
explanation.Publicad
How to Handle Assumptions in Synthesis
The increased interest in reactive synthesis over the last decade has led to
many improved solutions but also to many new questions. In this paper, we
discuss the question of how to deal with assumptions on environment behavior.
We present four goals that we think should be met and review several different
possibilities that have been proposed. We argue that each of them falls short
in at least one aspect.Comment: In Proceedings SYNT 2014, arXiv:1407.493
Equilibrium selection through incomplete information in coordination games: An experimental study
We perform an experiment on a pure coordination game with uncertainty about the payoffs. Our game is closely related to models that have been used in many macroeconomic and financial applications to solve problems of equilibrium indeterminacy. In our experiment each subject receives a noisy signal about the true payoffs. This game has a unique strategy profile that survives the iterative deletion of strictly dominated strategies (thus a unique Nash equilibrium). The equilibrium outcome coincides, on average, with the risk-dominant equilibrium outcome of the underlying coordination game. The behavior of the subjects converges to the theoretical prediction after enough experience has been gained. The data (and the comments) suggest that subjects do not apply through "a priori" reasoning the iterated deletion of dominated strategies. Instead, they adapt to the responses of other players. Thus, the length of the learning phase clearly varies for the different signals. We also test behavior in a game without uncertainty as a benchmark case. The game with uncertainty is inspired by the "global" games of Carlsson and Van Damme (1993).Global games, risk dominance, equilibrium selection, common knowledge, Leex
Evolutionary consequences of behavioral diversity
Iterated games provide a framework to describe social interactions among
groups of individuals. Recent work stimulated by the discovery of
"zero-determinant" strategies has rapidly expanded our ability to analyze such
interactions. This body of work has primarily focused on games in which players
face a simple binary choice, to "cooperate" or "defect". Real individuals,
however, often exhibit behavioral diversity, varying their input to a social
interaction both qualitatively and quantitatively. Here we explore how access
to a greater diversity of behavioral choices impacts the evolution of social
dynamics in finite populations. We show that, in public goods games, some
two-choice strategies can nonetheless resist invasion by all possible
multi-choice invaders, even while engaging in relatively little punishment. We
also show that access to greater behavioral choice results in more "rugged "
fitness landscapes, with populations able to stabilize cooperation at multiple
levels of investment, such that choice facilitates cooperation when returns on
investments are low, but hinders cooperation when returns on investments are
high. Finally, we analyze iterated rock-paper-scissors games, whose
non-transitive payoff structure means unilateral control is difficult and
zero-determinant strategies do not exist in general. Despite this, we find that
a large portion of multi-choice strategies can invade and resist invasion by
strategies that lack behavioral diversity -- so that even well-mixed
populations will tend to evolve behavioral diversity.Comment: 26 pages, 4 figure
- …