The Efficiency of Adapting Aspiration Levels

Posch, M., Pichler, A., & Sigmund, K. (1998). The Efficiency of Adapting Aspiration Levels. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-98-103

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Win-stay, lose-shift strategies in repeated games are based on an aspiration level. Amove is repeated if and only if the outcome, in the previous round, was satisficing in the sense that the payoff was at least as high as the aspiration level. We investigate the conditions under which adaptive mechanisms acting on the aspiration level (selection, for instance, or learning) can lead to an efficient outcome; in other words, when can satisficing become optimising? Analytic results for 2 X 2-games are presented. They suggest that in a large variety of social interactions, self-centered rules (based uniquely on one's own payoff) cannot suffice.

Item Type: Monograph (IIASA Interim Report)
Research Programs: Adaptive Dynamics Network (ADN)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 02:10
Last Modified: 27 Aug 2021 17:16

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