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Co-evolutionary dynamics and Bayesian interaction games

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  • Mathias Staudigl

Abstract

Recently there has been a growing interest in evolutionary models of play with endogenous interaction structure. We call such processes co-evolutionary dynamics of networks and play. We study a co-evolutionary process of networks and play in settings where players have diverse preferences. In the class of potential games we provide a closed-form solution for the unique invariant distribution of this process. Based on this result we derive various asymptotic statistics generated by the co-evolutionary process. We give a complete characterization of the random graph model, and stochastically stable states in the small noise limit. Thereby we can select among action profiles and networks which appear jointly with non-vanishing frequency in the limit of small noise in the population. We further study stochastic stability in the limit of large player populations. Copyright Springer-Verlag 2013

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  • Mathias Staudigl, 2013. "Co-evolutionary dynamics and Bayesian interaction games," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(1), pages 179-210, February.
    • Handle: RePEc:spr:jogath:v:42:y:2013:i:1:p:179-210
    DOI: 10.1007/s00182-012-0331-0
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    References listed on IDEAS

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    Cited by:

    1. Hellmann, Tim & Staudigl, Mathias, 2014. "Evolution of social networks," European Journal of Operational Research, Elsevier, vol. 234(3), pages 583-596.
    2. Zhiwei Cui, 2019. "Matching, Imitation, and Coordination in Networks," Dynamic Games and Applications, Springer, vol. 9(1), pages 47-67, March.
    3. Staudigl, Mathias, 2011. "Potential games in volatile environments," Games and Economic Behavior, Elsevier, vol. 72(1), pages 271-287, May.
    4. Phillip Monin & Richard Bookstaber, 2017. "Information Flows, the Accuracy of Opinions, and Crashes in a Dynamic Network," Staff Discussion Papers 17-01, Office of Financial Research, US Department of the Treasury.
    5. Mathias Staudigl, 2010. "On a General class of stochastic co-evolutionary dynamics," Vienna Economics Papers 1001, University of Vienna, Department of Economics.
    6. Phillip J. Monin & Richard Bookstaber, 2021. "Information flows and crashes in dynamic social networks," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(3), pages 471-495, July.

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