This paper considers bounded-memory players in a coordination game, who imitate the most successful remembered actions. With exogenous inertia, risk-dominant equilibria are selected independently of the length of memory. Without inertia, Pareto-dominant equilibria arise when memory is long enough.
|Original language||English (US)|
|Number of pages||3|
|State||Published - Nov 2008|
ASJC Scopus subject areas
- Economics and Econometrics