Stochastic learning in co-ordination games: a simulation approach (original) (raw)
In the presence of externalities, consumption behaviour depends on the solution of a coordination problem. In our paper we suggest a learning approach t o the study of coordination in consumption contexts where agents adjust their choices on the basis of the reinforcement payo they receive during the game. The results of simulations allowed us to distinguish the roles of di erent aspects of learning in enabling coordination within a population of agents. Our main results highlight: 1. the role played by the speed of learning in determining failures of the coordination process; 2. the e ect of forgetting past experiences on the speed of the coordination process; 3. the role of experimentation in bringing the process of coordination into an e cient equilibrium.