Physics – Condensed Matter – Statistical Mechanics
Scientific paper
2005-02-03
Physics
Condensed Matter
Statistical Mechanics
27 pages, 1 figure
Scientific paper
In games for which there exists a potential, the deviation-from-rationality dynamical model for which each agent's strategy adjustment follows the gradient of the potential along with a normally distributed random perturbation, is shown to equilibrate to a Gibbs measure. The standard Cournot model of an oligopoly is shown not to have a phase transition, as it is equivalent to a continuum version of the Curie-Weiss model. However, when there is increased local competition among agents, a phase transition will likely occur. If the oligopolistic competition has power-law falloff and there is increased local competition among agents, then the model has a rich phase diagram with an antiferromagnetic checkerboard state, striped states and maze-like states with varying widths, and finally a paramagnetic state. Such phases have economic implications as to how agents compete given various restrictions on how goods are distributed. The standard Cournot model corresponds to a uniform distribution of goods, whereas the power-law variations correspond to goods for which the distribution is more localized.
No associations
LandOfFree
A Gibbsian approach to potential game theory does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.
If you have personal experience with A Gibbsian approach to potential game theory, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and A Gibbsian approach to potential game theory will most certainly appreciate the feedback.
Profile ID: LFWR-SCP-O-527830