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Games between responsive behavioural rules

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  • Khan, Abhimanyu

Abstract

I study recurrent strategic interaction between two responsive behavioural rules in generic bi-matrix weakly acyclic games. The two individuals that play the game in a particular period choose their strategy by responding to a sample of strategies used by the co-players in the recent history of play. The response of a player is determined by his behavioural rule. I show that the game reaches a convention whenever the behavioural rule of each player is `weakly responsive' to the manner in which strategies were chosen in the past by the co-players, and stays locked into the convention if the behavioural rules are `mildly responsive'. Furthermore, amongst `mildly responsive' behavioural rules, individuals described by the behavioural rule of `extreme optimism' perform the best in the sense that their most preferred convention is always in the stochastically stable set; under an additional mild restriction that differentiates the behavioural rule of the other player from extreme optimism, the convention referred to above is the unique stochastically stable state.

Suggested Citation

  • Khan, Abhimanyu, 2018. "Games between responsive behavioural rules," MPRA Paper 90429, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90429
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    File URL: https://mpra.ub.uni-muenchen.de/90429/2/MPRA_paper_90429.pdf
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    References listed on IDEAS

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    Cited by:

    1. Khan, Abhimanyu, 2021. "Evolutionary stability of behavioural rules in bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 399-414.

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    More about this item

    Keywords

    evolution of conventions; behavioural rules; weakly responsive; mildly responsive; optimism;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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