Best-Reply Dynamic in Large Aggregative Games
31 Pages Posted: 2 Feb 2013
Date Written: January 28, 2013
We consider small-influence aggregative games with a large number of players n. For this class of games we present a best-reply dynamic with the following two properties. First, the dynamic reaches Nash approximate equilibria fast (in at most cn log n steps for some constant c>0). Second, Nash approximate equilibria are played by the dynamic with a limit frequency of at least 1-e-c'n for some constant c'>0.
Keywords: Aggregative games, Best-reply dynamic, Cournot equilibrium, Fast convergence to equilibrium, Small influence games
JEL Classification: C73, D43
Suggested Citation: Suggested Citation