Template-Type: ReDIF-Paper 1.0
Author-Name: Ratul Lahkar
Author-Name-First: Ratul
Author-Name-Last: Lahkar
Author-Email: ratul.lahkar@asoka.edu.in
Author-Workplace-Name: Ashoka University
Author-Name: Sayan  Mukherjee
Author-Name-First: Sayan 
Author-Name-Last: Mukherjee
Author-Email: sayanmukherjee012@gmail.com
Author-Workplace-Name: ISI Kolkata
Author-Name: Souvik Roy
Author-Name-First: Souvik
Author-Name-Last: Roy
Author-Email: souvik.2004@gmail.com
Author-Workplace-Name: ISI, Kolkata
Title: A Deterministic Approximation Approach to the Continuum Logit Dynamic with an Application to Supermodular Games
Abstract: We consider the logit dynamic in a large population game with a continuum of strategies. The deterministic approximation approach requires us to derive this dynamic as the finite horizon limit of a stochastic process in a game with a finite but large number of strategies and players. We first establish the closeness of this dynamic with a step–wise approximation. We then show that the logit stochastic process is close to the step–wise logit dynamic in a discrete approximation of the original game. Combining the two results, we obtain our deterministic approximation result. We apply the result to large population supermodular games with a continuum of strategies. Over finite but sufficiently long time horizons, the logit stochastic process converges to logit equilibria in a discrete approximation of the supermodular game. By the deterministic approximation approach, so does the logit dynamic in the continuum supermodular game
length: 31
Creation-Date: 20220426
Revision-Date: 
Publication-Status: 
File-URL: https://dp.ashoka.edu.in/ash/wpaper/paper79_0.pdf
File-Format: Application/pdf 
Number: 79
Handle: RePEc:ash:wpaper:79