Evolutionary network games: equilibria from imitation and best-response dynamics

Cimini, Giulio and Castellano, Claudio and Sánchez, Angel Evolutionary network games: equilibria from imitation and best-response dynamics. Journal of Economic Dynamics and Control. ISSN 0165-1889 (Submitted) (2015)

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Abstract

We consider games of strategic substitutes and strategic complements on networks. We introduce two different evolutionary dynamics in order to refine their multiplicity of equilibria, and we analyse the system through a mean field approach. We find that for the best-shot game, taken as a model for substitutes, a replicator-like dynamics does not lead to Nash equilibria, whereas it leads to unique equilibria (full cooperation or full defection, depending on the initial condition and the game parameter) for complements, represented by a coordination game. On the other hand, when the dynamics becomes more cognitively demanding in the form of a best response evolution, predictions are always Nash equilibria (at least when individuals are fully rational): For the best-shot game we find equilibria with a definite value of the fraction of contributors, whereas for the coordination game symmetric equilibria arise only for low or high initial fractions of cooperators. We also extend our study by considering complex heterogeneous topologies, and show that the nature of the selected equilibria does not change for the best-shot game. However for coordination games we reveal an important difference, namely that on infinitely large scale-free networks cooperation arises for any value of the incentive to cooperate.

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