The Evolution of Conventions

@article{Young1993TheEO,
  title={The Evolution of Conventions},
  author={H. Peyton Young},
  journal={Econometrica},
  year={1993},
  volume={61},
  pages={57-84}
}
  • H. Young
  • Published 1993
  • Economics
  • Econometrica
The author shows how a group of individuals can learn to play a coordination game without any common knowledge and with only a small amount of rationality. The game is repeated many times by different players. Each player chooses an optimal reply based on incomplete information about what other players have done in the past. Occasionally they make mistakes. When the likelihood of mistakes is very small, typically one coordination equilibrium will be played almost all of the time over the long… 

Figures from this paper

Adaptive dynamics in coordination games
A model of the process by which players learn to play repeated coordination games is proposed with the goal of understanding the results of recent experiments. In those experiments, the dynamics of
Essays on evolutionary game theory
A model of repeated play of a coordination game, where stage games have a location in social space, and players receive noisy signals of the true location oftheir games, is reviewed. Sugden (1995)
The Emergence of Cooperation through Leadership
We study the long-run outcomes of noisy asynchronous repeated games with players that are heterogeneous in their patience. The players repeatedly play a 2-by-2 coordination game with random pair-wise
Sophisticated play by idiosyncratic agents
Abstract.Agents are drawn from a large population and matched to play a symmetric $2\times2$ coordination game, the payoffs of which are perturbed by agent-specific heterogeneity. Individuals observe
Replicator Dynamics of an Assignment Game
In games with a high number of players, the main interest is normally on the investigation about the changing in the distribution of individuals along time. In this paper we use this kind of game to
Payoff-dependent dynamics and coordination games
This paper considers populations of agents whose behavior when playing some underlying game is governed by perturbed best (or better) response dynamics with perturbation probabilities that depend
The emergence of cooperation through leadership
TLDR
This work characterize the long-run outcomes of Markov perfect equilibrium that are robust to the mistakes and show that if one player is sufficiently patient whereas the other players are not so patient, the efficient state can be the unique robust outcome even if it is risk-dominated.
Stochastic Stability in the Best Shot Game
The best shot game applied to networks is a discrete model of many processes of contribution to local public goods. It has generally a wide multiplicity of equilibria that we refine through
The evolution of conventions under incomplete information
TLDR
An evolutionary learning process with trembles for static games of incomplete information is formulated and it is found that the equilibrium selection by evolutionary learning may well be in favor of inefficient Bayesian equilibria where some types of players fail to coordinate.
...
...

References

SHOWING 1-10 OF 39 REFERENCES
An Evolutionary Model of Bargaining
Abstract Individuals from two populations of bargainers are randomly matched to play the Nash demand game. They make their demands by choosing best replies based on an incomplete knowledge of the
EVOLUTIONARY GAMES IN ECONOMICS
Evolutionary games are introduced as models for repeated anonymous strategic interaction: actions (or behaviors) which are more "fit," given the current distribution of behaviors, tend over time to
Learning, Mutation, and Long Run Equilibria in Games
An evolutionary model with a finite number of players and with stochastic mutations is analyzed. The expansion and contraction of strategies is linked to their current relative success, but
Evolution of Equilibria in the Long Run: A General Theory and Applications
Abstract We extend the evolutionary process studied in Kandori et al., Econometrica 61 (1933), 29-56 to n × n games. The evolutionary process is driven by two forces: players switching to the best
Cooperation in the Short and in the Long Run
The emergence of cooperative behavior in a competitive world poses something of a puzzle for classical theories of competition, since it appears to be inconsistent with the pursuit of self-interest
Evolutionary Foundations of Solution Concepts for Finite, Two-Player, Normal-Form Games
TLDR
The results suggest that if one accepts the evolutionary approach to equilibrium concepts, then one will embrace either rationalizable or perfect equilibria, and there are robust adjustment processes which converge as well as robust processes which do not converge.
“Evolutionary” selection dynamics in games: Convergence and limit properties
This paper discusses convergence properties and limiting behavior in a class of dynamical systems of which the replicator dynamics of (biological) evolutionary game theory are a special case. It is
...
...