Noisy contagion without mutation

Citation
Ih. Lee et A. Valentinyi, Noisy contagion without mutation, REV ECON S, 67(1), 2000, pp. 47-56
Citations number
17
Categorie Soggetti
Economics
Journal title
REVIEW OF ECONOMIC STUDIES
ISSN journal
00346527 → ACNP
Volume
67
Issue
1
Year of publication
2000
Pages
47 - 56
Database
ISI
SICI code
0034-6527(200001)67:1<47:NCWM>2.0.ZU;2-F
Abstract
In a local interaction game agents play an identical stage game against the ir neighbours over time. For nearest neighbour interaction, it is establish ed that, starting from a random initial configuration in which each agent h as a positive probability of playing the risk dominant strategy, a sufficie ntly large population coordinates in the long-run on the risk dominant equi librium almost surely. Our result improves on Blume (1995), Ellison (2000), and Morris (2000) by showing that the risk dominant equilibrium spreads to the entire population in a two dimensional lattice and without the help of mutation, as long as there is some randomness in the initial configuration .