Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS
University of Tsukuba - Department of Social Systems and Management
May, 14 2011
Journal of Economic Dynamics and Control, Vol. 33, No. 10, 2009
This paper presents a model of learning about a game. Players initially have little knowledge about the game. Through playing the same game repeatedly, each player not only learns which action to choose but also constructs a personal view of the game. The model is studied using a hybrid payoff matrix of the prisoner’s dilemma and coordination games. Results of computer simulations show that (1) when all the players are slow at learning the game, they have only a partial understanding of the game, but might enjoy higher payoffs than in cases with full or no understanding of the game; (2) when one player is quick in learning the game, that player obtains a higher payoff than the others. However, all can receive lower payoffs than in the case in which all players are slow learners.
Keywords: Learning, Subjective views, Computer simulation
JEL Classification: C72, D83
Date posted: November 5, 2011