Neural Networks and Contagion

Siegfried K. Berninghaus (), Hans Haller () and Alexander Outkin
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Siegfried K. Berninghaus: Universität Karlsruhe, Postal: RZ Zirkel 2 D-76128 Karlsruhe
Hans Haller: Department of Economics, Virginia Polytechnic Institute and State University, Postal: Blacksburg, VA 24061-0316, USA

No 05-35, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim

Abstract: We analyze local as well as global interaction and contagion in population games, using the formalism of neural networks. In contrast to much of the literature, a state encodes not only the frequency of play, but also the spatial pattern of play. Stochastic best response dynamics with logistic noise gives rise to a log-linear or logit response model. The stationary distribution is of the Gibbs-Boltzmann type. The long-run equilibria are the maxima of a potential function.

Pages: 22 pages
Date: 2005-10-22
New Economics Papers: this item is included in nep-gth
Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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Journal Article: Neural networks and contagion (2006)
Working Paper: Neural Networks and Contagion (2005)
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