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: 24

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.

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: 24
  • Last Updated: 2 hours ago

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