Endogenous Barriers to Learning
Fuente:
arXiv
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| Format: | Preprint |
| Publié: |
2023
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| _version_ | 1866910971596898304 |
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| author | Compte, Olivier |
| author_facet | Compte, Olivier |
| contents | Building on the idea that lack of experience is a source of errors but that experience should reduce them, we model agents' behavior using a stochastic choice model (logit quantal response), leaving endogenous the accuracy of their choices. In some games, higher accuracy leads to unstable logit-response dynamics. Starting from the lowest possible accuracy, we define the barrier to learning as the maximum accuracy which keeps the logit-response dynamic stable (for all lower accuracies). This defines a limit quantal response equilibrium. We apply the concept to centipede, travelers' dilemma, and 11-20 money-request games and to first-price and all-pay auctions, and discuss the role of strategy restrictions in reducing or amplifying barriers to learning. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2306_16904 |
| institution | arXiv |
| publishDate | 2023 |
| record_format | arxiv |
| spellingShingle | Endogenous Barriers to Learning Compte, Olivier General Economics Economics Building on the idea that lack of experience is a source of errors but that experience should reduce them, we model agents' behavior using a stochastic choice model (logit quantal response), leaving endogenous the accuracy of their choices. In some games, higher accuracy leads to unstable logit-response dynamics. Starting from the lowest possible accuracy, we define the barrier to learning as the maximum accuracy which keeps the logit-response dynamic stable (for all lower accuracies). This defines a limit quantal response equilibrium. We apply the concept to centipede, travelers' dilemma, and 11-20 money-request games and to first-price and all-pay auctions, and discuss the role of strategy restrictions in reducing or amplifying barriers to learning. |
| title | Endogenous Barriers to Learning |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2306.16904 |