Duersch, Peter Oechssler, Joerg Schipper, Burkhard
Year of Publication:
Working Papers, University of California, Department of Economics 11,12
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