Idiosyncratic and Aggregate Time-Varying Mutation Rates in Coordination Games

Arbeitspapier

We extend the standard evolutionary model of Kandori, Mailath, andRob (1993) to incorporate time-varying aggregate and idiosyncraticshocks separately in coordination games.We show that both types of shocks have a different effect on theinvariant distribution over the different equilibria of dthe game.While idiosyncratic shocks are shown to be neutral, the aggregateshocks introduce a systematic bias against the risk dominantequilibrium.Different from Kandori, Mailath, and Rob (1993) we derive a sufficient conditionunder which this bias prevents equilibrium selection with probability one.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 01-041/1

Classification and Topics

• Classification: Wirtschaft
• Subject: Spieltheorie ; Schock ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Houba, Harold ; Tieman, Alexander F.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/85933
• Last update: 10.03.2025, 11:42 AM CET