Abstract

http://ssrn.com/abstract=1086204
 
 

References (19)



 
 

Citations (1)



 


 



Social Comparisons in Games


Jonathan Bendor


Stanford Graduate School of Business

Daniel Diermeier


Northwestern University - Kellogg School of Management

Michael M. Ting


Columbia University - Department of Political Science

1/18/2008


Abstract:     
We develop a model of adaptive learning in normal form games with social comparisons. Actors in the model adjust their behavior by aspiration-based adaptation: they are more likely to choose actions that recently yielded satisfactory payoffs and are less likely to repeat those that resulted in unsatisfactory payoffs.

Satisfaction is evaluated relative to an aspiration level that reflects previous payoffs. Aspirations, however, may depend not only on individual experiences but also on other players' payoffs. Thus, the model captures the effect of an important kind of social comparison, provided by exogenous reference groups. We show that under a variety of simple emulation patterns the presence of social comparisons significantly constrains the set of stable outcomes. In particular, if reference groups are sufficiently dense then in every stable outcome all players receive identical payoffs.

Number of Pages in PDF File: 20

Keywords: social comparison, adaptation, satisfying

working papers series


Download This Paper

Date posted: January 22, 2008  

Suggested Citation

Bendor, Jonathan and Diermeier, Daniel and Ting, Michael M., Social Comparisons in Games (1/18/2008). Available at SSRN: http://ssrn.com/abstract=1086204 or http://dx.doi.org/10.2139/ssrn.1086204

Contact Information

Jonathan Bendor
Stanford Graduate School of Business ( email )
518 Memorial Way
Stanford, CA 94305-5015
United States

Daniel Diermeier (Contact Author)
Northwestern University - Kellogg School of Management ( email )
2001 Sheridan Road
Evanston, IL 60208
United States
Michael M. Ting
Columbia University - Department of Political Science ( email )
MC3320
420 West 118th Street
New York, NY 10027
United States
Feedback to SSRN


Paper statistics
Abstract Views: 476
Downloads: 63
Download Rank: 205,376
References:  19
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.266 seconds