Dynamic Matching Pennies on Networks

International Journal of Game Theory

39 Pages Posted: 4 May 2013 Last revised: 10 Feb 2019

See all articles by Zhigang Cao

Zhigang Cao

Beijing Jiaotong University - School of Economics and Management

Cheng-Zhong Qin

University of California, Santa Barbara (UCSB) - Department of Economics

Xiaoguang Yang

Chinese Academy of Sciences (CAS)

Boyu Zhang

Beijing Normal University (BNU)

Date Written: November 1, 2015

Abstract

We consider a network game based on matching pennies with two types of agents, conformists and rebels. Conformists prefer to match the action taken by the majority of her neighbors while rebels like to match the minority. We investigate the simultaneous best response dynamic focusing on the lengths of limit cycles (LLC for short). Our results imply that the network structure generally plays a very crucial role in determining LLC. When the network is a line or a ring, for almost all type configurations, LLC=1, meaning that a pure strategy Nash equilibrium is reached, regardless of the initial action profiles. However, when the network is a star, LLC=4 for approximately half of the type configurations. The ordinal potential property and the sequential best response dynamic are also studied.

Keywords: fashion cycle, network games, coordination, anti-coordination, matching pennies

JEL Classification: A14, C62, C72, D72, D83, D85, Z13

Suggested Citation

Cao, Zhigang and Qin, Cheng-Zhong and Yang, Xiaoguang and Zhang, Boyu, Dynamic Matching Pennies on Networks (November 1, 2015). International Journal of Game Theory. Available at SSRN: https://ssrn.com/abstract=2260025 or http://dx.doi.org/10.2139/ssrn.2260025

Zhigang Cao

Beijing Jiaotong University - School of Economics and Management ( email )

China

Cheng-Zhong Qin

University of California, Santa Barbara (UCSB) - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States

Xiaoguang Yang (Contact Author)

Chinese Academy of Sciences (CAS) ( email )

52 Sanlihe Rd.
Datun Road, Anwai
Beijing, Xicheng District 100864
China

Boyu Zhang

Beijing Normal University (BNU) ( email )

19 Xinjiekou Outer St
Haidian District
Beijing, Guangdong 100875
China

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