Context-based Imitation and the Evolution of Behavioral Rules

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Hauptverfasser: Arellano, Enrique Urbano, Wang, Xinyang
Format: Preprint
Veröffentlicht: 2023
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author Arellano, Enrique Urbano
Wang, Xinyang
author_facet Arellano, Enrique Urbano
Wang, Xinyang
contents We study the evolution of behavioral rules in environments with multiple contexts. Agents copy rules used by better-performing peers in the same context and apply them across contexts. Multiple contexts turn discrete-time imitation dynamics into a context-weighted social choice problem: the population converges to consensus if and only if some rule is a Condorcet winner; otherwise, persistent non-convergence can occur. Among same-context imitation protocols, imitate-if-better uniquely minimizes envy. The framework provides a new account of belief evolution, characterizing when imitation selects rational expectations and showing how persistent belief and consumption fluctuations can arise in stationary environments.
format Preprint
id arxiv_https___arxiv_org_abs_2310_15861
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Context-based Imitation and the Evolution of Behavioral Rules
Arellano, Enrique Urbano
Wang, Xinyang
Theoretical Economics
We study the evolution of behavioral rules in environments with multiple contexts. Agents copy rules used by better-performing peers in the same context and apply them across contexts. Multiple contexts turn discrete-time imitation dynamics into a context-weighted social choice problem: the population converges to consensus if and only if some rule is a Condorcet winner; otherwise, persistent non-convergence can occur. Among same-context imitation protocols, imitate-if-better uniquely minimizes envy. The framework provides a new account of belief evolution, characterizing when imitation selects rational expectations and showing how persistent belief and consumption fluctuations can arise in stationary environments.
title Context-based Imitation and the Evolution of Behavioral Rules
topic Theoretical Economics
url https://arxiv.org/abs/2310.15861