Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/97216 
Year of Publication: 
2014
Series/Report no.: 
Center for Mathematical Economics Working Papers No. 506
Publisher: 
Bielefeld University, Center for Mathematical Economics (IMW), Bielefeld
Abstract: 
We describe the large deviations properties, stationary distribution asymptotics, and stochastically stable states of stochastic evolutionary processes based on the logit choice rule, focusing on behavior in the small noise double limit. These aspects of the stochastic evolutionary process can be characterized in terms of solutions to certain minimum cost path problems. We solve these problems explicitly using tools from optimal control theory. The analysis focuses on three-strategy coordination games that satisfy the marginal bandwagon property and that have an interior equilibrium, but our approach can be applied to other classes of games and other choice rules.
Document Type: 
Working Paper

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