Average testing and Pareto efficiency

• 成果类型: Article
• 署名作者: Arieli, Itai; Babichenko, Yakov
• 署名单位: University of Oxford; University of Oxford; Hebrew University of Jerusalem; Hebrew University of Jerusalem
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2012.05.001
• 发表日期: 2012
• 页码: 2376-2398
• 关键词: Pareto efficient boundary; Learning dynamic; Average testing

摘要

We propose a simple adaptive procedure for playing strategic games: average testing. In this procedure each player sticks to her current strategy if it yields a payoff that exceeds her average payoff by at least some fixed epsilon > 0; otherwise she chooses a strategy at random. We consider generic two-person games where both players play according to the average testing procedure on blocks of k-periods. We demonstrate that for all k large enough, the pair of time-average payoffs converges (almost surely) to the 3 epsilon-Pareto efficient boundary. (C) 2012 Elsevier Inc. All rights reserved.