We show that in symmetric two-player exact potential games, the simple decision rule "imitate-if-better" cannot be beaten by any strategy in a repeated game by more than the maximal payoff difference of the one-period game. Our results apply to many interesting games including examples like 2x2 games, Cournot duopoly, price competition, public goods games, common pool resource games, and minimum effort coordination games.
|Item Type:||Working paper|
|Date Deposited:||21. Jun 2012 14:48|
|Faculties / Institutes:||The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics|
|Uncontrolled Keywords:||Imitate-the-best, learning , exact potential games , symmetric games , relative payoffs , zero-sum games|
|Schriftenreihe ID:||Discussion Paper Series / University of Heidelberg, Department of Economics|