Article ID: | iaor20014116 |
Country: | Netherlands |
Volume: | 89 |
Start Page Number: | 233 |
End Page Number: | 251 |
Publication Date: | Jun 1999 |
Journal: | Annals of Operations Research |
Authors: | Hofbauer Josef |
Keywords: | economics |
A new framework for equilibrium selection is presented. Playing games recurrently in space and time may render one of the equilibria ‘spatially dominant’. Prevailing initially on a large enough finite part of the space, it will take over on the whole space in the long run. In particular it will drive out the other equilibria along travelling waves. This new dominance concept is compared with the Harsanyi–Selten risk-dominance concept.