scholarly journals Equilibrium Selection in Signaling Games

Econometrica ◽  
1987 ◽  
Vol 55 (3) ◽  
pp. 647 ◽  
Author(s):  
Jeffrey S. Banks ◽  
Joel Sobel
Keyword(s):  
Equilibrium Selection ◽  
Signaling Games

Equilibrium Selection in Bargaining Models

2003 ◽  
Author(s):  
Kenneth Binmore ◽  
Larry Samuelson ◽  
H. Peyton Peyton Young
Keyword(s):  
Equilibrium Selection ◽  
Bargaining Models

Equilibrium selection for multi-portfolio optimization

2021 ◽  
Author(s):  
Lorenzo Lampariello ◽  
Christoph Neumann ◽  
Jacopo M. Ricci ◽  
Simone Sagratella ◽  
Oliver Stein
Keyword(s):  
Portfolio Optimization ◽  
Equilibrium Selection ◽  
Selection For

scholarly journals Competing Conventions with Costly Information Acquisition

Games ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 53
Author(s):  
Roberto Rozzi
Keyword(s):  
Information Acquisition ◽  
Evolutionary Model ◽  
Equilibrium Selection ◽  
The Other ◽  
Group Interactions ◽  
Social Coordination ◽  
Long Run ◽  
Stochastic Stability Analysis ◽  
The Stability ◽  
The Cost

We consider an evolutionary model of social coordination in a 2 × 2 game where two groups of players prefer to coordinate on different actions. Players can pay a cost to learn their opponent’s group: if they pay it, they can condition their actions concerning the groups. We assess the stability of outcomes in the long run using stochastic stability analysis. We find that three elements matter for the equilibrium selection: the group size, the strength of preferences, and the information’s cost. If the cost is too high, players never learn the group of their opponents in the long run. If one group is stronger in preferences for its favorite action than the other, or its size is sufficiently large compared to the other group, every player plays that group’s favorite action. If both groups are strong enough in preferences, or if none of the groups’ sizes is large enough, players play their favorite actions and miscoordinate in inter-group interactions. Lower levels of the cost favor coordination. Indeed, when the cost is low, in inside-group interactions, players always coordinate on their favorite action, while in inter-group interactions, they coordinate on the favorite action of the group that is stronger in preferences or large enough.

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