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* Schlag, Karl H. (1998) 'Why Imitate, And If So, How? A Boundedly Rational Approach to Multi-Armed Bandits', Journal of Economic Theory, 78(1), January, pp. 130-156. [Individuals in a finite population repeatedly choose among actions yielding uncertain payoffs. Between choices, each individual observes the action and realised outcome of one other individual. We restrict our search to learning rules with limited memory that increase expected payoffs regardless of the distribution underlying their realisations. It is shown that the rule that outperforms all others is that which imitates the action of an observed individual (whose realised outcome is better than self) with a probability proportional to the difference in these realisations. When each individual uses this best rule the aggregate population behaviour is approximated by the replicator dynamic.] [schlag_96.pdf] [*0]
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+ Sinclair, P. J. N. (1990) 'The Economics of Imitation', Scottish Journal of Political Economy, 37(2), May, pp. 113-144.
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+ Van Damme, E. and Weibull, J.W. (1998) 'Evolution with Mutations Driven by Control Costs', Draft Paper, Center for Economic Research Tilburg University, 29th September. [Bergin and Lipman (1996) show that the refinement effect from the random mutations in the adaptive dynamics in Kandori, Mailath and Rob (1993) and Young (1993) is due to restrictions on how these mutation rates vary across population states. We here model these mutation rates as endogenously determined mistake probabilities, by assuming that players at some cost or disutility can control their mistake probability: the probability of implementing another pure strategy than intended. This is shown to corroborate the result in Kandori-Mailath-Rob and Young that the risk-dominant equilibrium is selected in 2 x 2-coordination games.] [D POSTSCRIPT] [D PDF]
* Vega-Redondo, Fernando (1996) Evolution, Games, and Economic Behaviour (Oxford: Oxford University Press). [*0]
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Weibull, Jo:rgen W. (1995) Evolutionary Game Theory (Cambridge, MA: The M. I. T. Press). [*0]
+ Witt, Ulrich (1989a) 'The Evolution of Economic Institutions as a Propagation Process', Public Choice, 62(2), August, pp. 155-172. [An evolutionary game theoretic analysis of the spread of institutions as a diffusion process distinguishing between cases of spontaneous emergence and cases in which collective action is necessary to introduce the institution. Collective action is represented as organisation by 'change agents' who build a coalition taking the society above some threshold needed for spontaneous propagation.]
Wu, J. and Axelrod, R.