The Stability of conventions: random and lattice matching networks compared
- Publisher: Economics Letters
arxiv: Computer Science::Computer Science and Game Theory
We consider the stability of the risk-dominant equilibrium in a two-strategy coordination game when players behave myopically. The case of a lattice matching network is compared to that of a random network. We demonstrate that the risk-dominant equilibrium is unstable given a lattice network and stable given a random network.