The exact solution of spatial logit response games

Tomohiko Konno and Yannis Ioannides

Mathematical Social Sciences, 2019, vol. 97, issue C, 1-10

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 probability 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.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:97:y:2019:i:c:p:1-10

DOI: 10.1016/j.mathsocsci.2018.09.003

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