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Stochastic learning in coordination games: a simulation approach

Author

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  • Enrico Zaninotto

    (DISA, Faculty of Economics, Trento University)

  • Alessandro Rossi
  • Loris Gaio
Abstract
In the presence of externalities, consumption behaviour depends on the solution of a co-ordination problem. In our paper we suggest a learning approach to the study of co-ordination in consumption contexts where agents adjust their choices on the basis of the reinforcement (payoff) they receive during the game. The results of simulations allowed us to distinguish the roles of different aspects of learning in enabling co-ordination within a population of agents. Our main results highlight: 1. the role played by the speed of learning in determining failures of the co-ordination process; 2. the effect of forgetting past experiences on the speed of the co-ordination process; 3. the role of experimentation in bringing the process of co-ordination into an efficient equilibrium.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Enrico Zaninotto & Alessandro Rossi & Loris Gaio, 1999. "Stochastic learning in coordination games: a simulation approach," Quaderni DISA 015, Department of Computer and Management Sciences, University of Trento, Italy, revised 29 Jun 2003.
    • Handle: RePEc:trt:disatr:015
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    References listed on IDEAS

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