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Imitation, local interaction, and efficiency: reappraisal

Author

Listed:
  • Hsiao-Chi Chen

    (National Taipei University)

  • Yunshyong Chow

    (Institute of Mathematics, Academia Sinica)

  • Li-Chau Wu

    (Department of Mathematics, National Taitung University)

Abstract

We revisit the model of Alos-Ferrer and Weidenholzer (2006) but under the assumption that risk-dominant equilibria are Pareto efficient. It is found that risk-dominant equilibria, non-risk-dominant equilibria, and some non-monomorphic states can emerge in the long run when players interact with their immediate neighbors only.

Suggested Citation

  • Hsiao-Chi Chen & Yunshyong Chow & Li-Chau Wu, 2012. "Imitation, local interaction, and efficiency: reappraisal," Economics Bulletin, AccessEcon, vol. 32(1), pages 675-684.
    • Handle: RePEc:ebl:ecbull:eb-11-00835
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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P62.pdf
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    References listed on IDEAS

    as
    1. Glenn Ellison, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 17-45.
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    Cited by:

    1. Hsiao-Chi Chen & Shi-Miin Liu, 2017. "An Evolutionary Approach to International Environmental Agreements with Full Participation," RIEEM Discussion Paper Series 1702, Research Institute for Environmental Economics and Management, Waseda University.
    2. Alós-Ferrer, Carlos & Weidenholzer, Simon, 2014. "Imitation and the role of information in overcoming coordination failures," Games and Economic Behavior, Elsevier, vol. 87(C), pages 397-411.
    3. Hsiao‐Chi Chen & Shi‐Miin Liu, 2023. "International environmental agreements under different evolutionary imitation mechanisms," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(2), pages 248-289, June.

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    More about this item

    Keywords

    Coordination game; imitation; local interaction;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D0 - Microeconomics - - General

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