Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Article number | 1 |
---|---|
<mark>Journal publication date</mark> | 4/03/2021 |
<mark>Journal</mark> | Network Science |
Issue number | 1 |
Volume | 9 |
Number of pages | 11 |
Pages (from-to) | 123-133 |
Publication Status | Published |
Early online date | 4/12/20 |
<mark>Original language</mark> | English |
A number of theoretical results have provided sufficient conditions for the selection of payoff-efficient equilibria in games played on networks when agents imitate successful neighbors and make occasional mistakes (stochastic stability). However, those results only guarantee full convergence in the long-run, which might be too restrictive in reality. Here, we employ a more gradual approach relying on agent-based simulations avoiding the double limit underlying these analytical results. We focus on the circular-city model, for which a sufficient condition on the population size relative to the neighborhood size was identified by Alós-Ferrer & Weidenholzer [(2006) Economics Letters, 93, 163-168]. Using more than 100,000 agent-based simulations, we find that selection of the efficient equilibrium prevails also for a large set of parameters violating the previously identified condition. Interestingly, the extent to which efficiency obtains decreases gradually as one moves away from the boundary of this condition.