Learning to be fair
نویسنده
چکیده
We study the process of equilibrium selection in games when players have "sophisticated" preferences of the type discussed, among others, by Rabin [16] and Segal and Sobel [17]. To this end, we employ standard noisy version of the best response dynamics. We obtain several results concerning some popular games such as the Prisoner's Dilemma, the Battle of the Sexes and the Dictator Game. For example we show that with the preferences for reciprocity introduced by Rabin, the cooperative Nash equilibrium in the Prisoner's Dilemma is never stochastically stable.
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