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Higher Order Games Dynamics

Laraki, Rida; Mertikopoulos, Panayotis (2012), Higher Order Games Dynamics, Journal of Economic Theory, 148, 6, p. 2666-2695. 10.1016/j.jet.2013.08.002

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Higher_order.pdf (1.183Mb)
Type
Article accepté pour publication ou publié
Date
2012
Nom de la revue
Journal of Economic Theory
Volume
148
Numéro
6
Éditeur
Elsevier
Pages
2666-2695
Identifiant publication
10.1016/j.jet.2013.08.002
Métadonnées
Afficher la notice complète
Auteur(s)
Laraki, Rida cc
Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision [LAMSADE]
Mertikopoulos, Panayotis cc
CNRS
Résumé (EN)
Continuous-time game dynamics are typically first order systems where payoffs determine the growth rate of the playersʼ strategy shares. In this paper, we investigate what happens beyond first order by viewing payoffs as higher order forces of change, specifying e.g. the acceleration of the playersʼ evolution instead of its velocity (a viewpoint which emerges naturally when it comes to aggregating empirical data of past instances of play). To that end, we derive a wide class of higher order game dynamics, generalizing first order imitative dynamics, and, in particular, the replicator dynamics. We show that strictly dominated strategies become extinct in n-th order payoff-monotonic dynamics n orders as fast as in the corresponding first order dynamics; furthermore, in stark contrast to first order, weakly dominated strategies also become extinct for n⩾2. All in all, higher order payoff-monotonic dynamics lead to the elimination of weakly dominated strategies, followed by the iterated deletion of strictly dominated strategies, thus providing a dynamic justification of the well-known epistemic rationalizability process of Dekel and Fudenberg [7]. Finally, we also establish a higher order analogue of the folk theorem of evolutionary game theory, and we show that convergence to strict equilibria in n-th order dynamics is n orders as fast as in first order.
Mots-clés
Game dynamics; Higher order dynamical systems; (Weakly) dominated strategies; Learning; Replicator dynamics; Stability of equilibria
JEL
C61 - Optimization Techniques; Programming Models; Dynamic Analysis
C62 - Existence and Stability Conditions of Equilibrium
C72 - Noncooperative Games
C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games

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