Duersch, Peter Oechssler, Jörg Schipper, Burkhard C.
Year of Publication:
Discussion Paper Series, University of Heidelberg, Department of Economics 529
We show that in symmetric two-player exact potential games, the simple decision rule "imitate-if-better" cannot be beaten by any strategy in a repeated game by more than the maximal payoff difference of the one-period game. Our results apply to many interesting games including examples like 2x2 games, Cournot duopoly, price competition, public goods games, common pool resource games, and minimum effort coordination games.
Imitate-the-best learning exact potential games symmetric games relative payoffs zero-sum games