On the Nonconvergence of Fictitious Play in Coordination Games

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/4152 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/4152 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/4152 archive 351 disk0/00/00/45/91 2016-01-15 02:06:34 2021-08-27 17:15:24 2016-01-15 02:06:34 monograph show 2 Foster D. Young H.P. AL1397 On the Nonconvergence of Fictitious Play in Coordination Games pub iis_ecn iis_neg prog_ins see WP-96-033 for revised version It is natural to conjecture that fictitious play converges in coordination games, but this is shown by counterexample to be false. Variants of fictitious play in which past actions are eventually forgotten and there are small stochastic perturbations are much better behaved: over the long run players manage to coordinate with high probability. 1995-01 published WP-95-001 WP-95-001 10 2539 public working_paper IIASA, Laxenburg, Austria 10 FALSE info:eu-repo/semantics/book