The Exact Solution of Spatial Logit Response Games

Tomohiko Konno and Yannis Ioannides

No 827, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University

Abstract: This paper proposes a logit response game with a spatial social structure and solves it exactly. We derive closed-form solutions for the strategy choice probabilities, the spatial correlation function of strategies of distant players, and the expected utility. We study how the prob- ability of adopting a cooperative strategy in a prisoner's dilemma game and the probability of adopting Pareto efficient strategies in a cooperation game are affected by changes in the parameter that expresses payoff-responsiveness.

Keywords: Spatial Logit Game; Exact solution; Network; Logit Local Interaction; Competi- tion with Spatial Structure; Spatial coordination game (search for similar items in EconPapers)
JEL-codes: D21 R00 R30 R32 R39 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-gth and nep-upt
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https://sites.tufts.edu/yioannides/files/2018/03/5 ... _Logit_Games_YMI.pdf

Related works:
Journal Article: The exact solution of spatial logit response games (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:tuf:tuftec:0827

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