Endogenous barriers to learning

Olivier Compte ()
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Olivier Compte: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris

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Abstract: Building on the idea that lack of experience is a source of errors but that experience should reduce them, we model agents' behavior using a stochastic choice model (logit quantal response), leaving endogenous the accuracy of their choices. In some games, higher accuracy leads to unstable logit-response dynamics. Starting from the lowest possible accuracy, we define the barrier to learning as the maximum accuracy which keeps the logit-response dynamic stable (for all lower accuracies). This defines a limit quantal response equilibrium. We apply the concept to centipede, travelers' dilemma, and 11-20 money-request games and to first-price and all-pay auctions, and discuss the role of strategy restrictions in reducing or amplifying barriers to learning.

Date: 2025
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Published in Games and Economic Behavior, inPress, ⟨10.1016/j.geb.2025.06.003⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-05340600

DOI: 10.1016/j.geb.2025.06.003

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