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Sampling dynamics applied to the traveler's dilemma reveals non-Nash behavior.
- Source :
-
Games & Economic Behavior . Nov2023, Vol. 142, p339-356. 18p. - Publication Year :
- 2023
-
Abstract
- The traveler's dilemma is characterized by a strict Nash equilibrium that is Pareto-inefficient. Even though a coordinated choice of more efficient options would be preferred by both players, any individual deviation from Nash behavior will induce a lower payoff. Yet experimental behavior reported in the literature demonstrates that deviations from Nash behavior toward Pareto-better outcomes are typical. An application of the sampling dynamics to this dilemma further justifies the non-Nash behavior. Due to the fact, that the sampling dynamics is not payoff-monotonic, even dominated strategies can survive the selection process. It is shown that for a generalized traveler's dilemma an interior equilibrium attracts almost all trajectories, given that there are sufficiently many options. The limit for infinitely many options is derived. [ABSTRACT FROM AUTHOR]
- Subjects :
- *DILEMMA
*NASH equilibrium
*TRAVELERS
*GAME theory
Subjects
Details
- Language :
- English
- ISSN :
- 08998256
- Volume :
- 142
- Database :
- Academic Search Index
- Journal :
- Games & Economic Behavior
- Publication Type :
- Academic Journal
- Accession number :
- 174301565
- Full Text :
- https://doi.org/10.1016/j.geb.2023.08.008