Positive feedback in coordination games: Stochastic evolutionary dynamics and the logit choice rule

B-Tier
Journal: Games and Economic Behavior
Year: 2021
Volume: 126
Issue: C
Pages: 355-373

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the problem of stochastic stability for evolutionary dynamics under the logit choice rule. We consider general classes of coordination games, symmetric or asymmetric, with an arbitrary number of strategies, which satisfies the marginal bandwagon property (i.e., there is positive feedback to coordinate). Our main result is that the most likely evolutionary escape paths from a status quo convention consist of a series of identical mistakes. As an application of our result, we show that the Nash bargaining solution arises as the long run convention for the evolutionary Nash demand game under the usual logit choice rule. We also obtain a new bargaining solution if the logit choice rule is combined with intentional idiosyncratic plays. The new bargaining solution is more egalitarian than the Nash bargaining solution, demonstrating that intentionality implies equality under the logit choice model.

Technical Details

RePEc Handle
repec:eee:gamebe:v:126:y:2021:i:c:p:355-373
Journal Field
Theory
Author Count
2
Added to Database
2026-02-02