Coordination and learning behavior in large groups with asymmetric players
Seale, Darryl A.
|Summary||We consider a class of large group, non-cooperative, iterated market entry games with complete information, binary choices, and asymmetric players in which the incentive of each player to enter the market decreases linearly in the number of entrants. Experimental results show remarkable coordination on the aggregate level, which is captured by the Nash equilibrium solution. However, the Nash equilibrium does not account for the differences among types of players with differential entry costs or differences among players of the same type. The observed behavioral regularities are accounted for by a reinforcement-based adaptive learning model postulating changes in individual cutoff points which showly diminish over time.|
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