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Evolution In Repeated Games With Discounting And Complexity Costs.pdf

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Preview of Evolution in Repeated Games with Discounting and Complexity Costs
🔗 Source: papers.tinbergen.nl
📊 Size: 629 KB
👤 Author: 11954wdr
⬇️ Downloads: 23

Summary

- It extends Cooper's (1996) folk theorem result to continuation probabilities (discount rates) smaller than 1.
- While All D (always defect) is evolutionarily stable and has a uniform invasion barrier, indirect invasions through "almost neutral" mutants become significant with sufficiently small complexity costs.
- Simulations show that populations visit various strategies with different cooperation levels for low complexity costs, as mutants previously considered neutral become "almost neutral" with decreasing complexity costs.
- Related Work:
- Most evolutionary game theory literature on repeated games does not account for complexity costs.
- Notable exceptions include Binmore and Samuelson (1992), Cooper (1996), and Volij (2002), which model settings with relatively small complexity costs compared to game payoffs.
- Future Work:
- The paper aims to understand the dynamics in repeated games with complexity costs and discounting.
- It extends Cooper's (1996) result and discusses the stability of All D compared to other equilibria.
- The authors plan to link up with results in Binmore and Samuelson (1992) and Volij (2002) in future work.

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Description

In and Out of Equilibrium II' explores evolution in repeated games with discounting and complexity costs, authored by Matthijs van Veelen and Julian Garcia.

Technical Information

  • File Format: PDF
  • File Size: 629 KB
  • Pages: 33
  • Language: EN
  • Author: 11954wdr
  • Total Downloads: 23
  • Last Updated: 11 hours ago

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