Imitation and the role of information in overcoming coordination failures

Carlos Alós-Ferrer, Simon Weidenholzer

Research output: Contribution to journalArticle

Abstract

We consider minimum-effort games played in an arbitrary network. For a family of imitation behavioral rules, including Imitate the Best and the Proportional Imitation Rule, we show that inefficient conventions arise independently of the interaction structure, if information is limited to the interaction neighborhoods. In the presence of information spillovers, we provide a condition on the network structure that guarantees the emergence of efficient conventions. In contrast, if this condition is violated we will observe inefficient conventions, even in the presence of information spillovers.

Original languageEnglish (US)
Pages (from-to)397-411
Number of pages15
JournalGames and Economic Behavior
Volume87
DOIs
StatePublished - Sep 2014

Keywords

  • Imitation
  • Learning
  • Local interactions
  • Minimum effort games

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Imitation and the role of information in overcoming coordination failures'. Together they form a unique fingerprint.

  • Cite this