The mixed strategy equilibria and adaptive dynamics in the Bar Problem

This paper looks at an N person coordination game which is called by Brian Arthur as the bar problem We look at the mixed strategy equilibria and show that there is a unique purely mixed strategy equilibrium in which all players play non degenerated mixed strategies We also examine some simple dynamics that might evolve the system to that equilibrium by conducting some preliminary numerical experiments The results show that under usual initial conditions the system will converge to the unique mixed strategy equilibrium This paper summarizes the project I did during the Santa Fe Institute Computational Economics Workshop Special thanks to the organizers of the Workshop John Miller and Scott Page I also wish to thank fellow workshop participants especially Nick Feltovich and Jordan Rapporport for their very helpful comments and suggestions