Imitation, local interaction, and coordination

This paper analyzes players’ long run behavior in evolutionary coordination games with one-dimensional local interaction and imitation. Different from Alós-Ferrer and Weidenholzer’s study (JET, 2008), players in our model are assumed to extract valuable information from their interaction neighbors only. It is found that the payoff-dominant equilibrium could survive in the long run with a positive less-than-one probability. We derive the conditions under which both risk-dominant-strategy and payoff-dominantstrategy takers would coexist in the long run. And the risk-dominant equilibrium is the unique long run equilibrium for the rest cases. These results supplement the findings of Alós-Ferrer and Weidenholzer. Finally, the convergence rates to all equilibria are reported.