Stability of strict equilibria in best experienced payoff dynamics: Simple formulas and applications

Segismundo Izquierdo () and Luis Izquierdo

Journal of Economic Theory, 2022, vol. 206, issue C

Abstract: We consider a family of population game dynamics known as Best Experienced Payoff Dynamics. Under these dynamics, when agents are given the opportunity to revise their strategy, they test some of their possible strategies a fixed number of times. Crucially, each strategy is tested against a new randomly drawn set of opponents. The revising agent then chooses the strategy whose total payoff was highest in the test, breaking ties according to a given tie-breaking rule. Strict Nash equilibria are rest points of these dynamics, but need not be stable. We provide some simple formulas and algorithms to determine the stability or instability of strict Nash equilibria.

Keywords: Best experienced payoff; Procedural rationality; Payoff-sampling dynamics; Stability (search for similar items in EconPapers)
JEL-codes: C72 C73 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:206:y:2022:i:c:s0022053122001430

DOI: 10.1016/j.jet.2022.105553

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