Comparative learning dynamics
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › Not applicable › peer-review
Related Research Unit(s)
|Journal / Publication||International Economic Review|
|Early online date||19 Apr 2004|
|Publication status||Published - May 2004|
|Link to Scopus||https://www.scopus.com/record/display.uri?eid=2-s2.0-2442562253&origin=recordpage|
We study economic environments in which agents make choices on the basis of relative performance criteria and call the associated class of dynamic adjustment rules comparative dynamics. We distinguish two classes of learning behavior: learning from the population experience (imitative dynamics) and learning only from one's own experience (introspective dynamics). Paradoxically, for a broad class of models, comparing stochastically stable states across dynamics, agent payoffs are lower for imitative than introspective dynamics - mimicking best practice in the population is counterproductive.