Adaptive play by idiosyncratic agents (Q705951)

In this paper a coordination game is considered where trembles are added to payoffs. Hence with some probability it is optimal to act against the flow of play. The long run distribution of population behavior correspond to a stable Bayesian Nash equilibria. As the variance of payoff trembles vanishes a single equilibrium is played almost always in the long run. Kandori, Mailath and Rob and Young have shown that the number of contrary actions required to escape an equilibrium determines selection. In this study the likelihood that such actions are taken is shown to be equally important.