Calibrated Clustering and Analogy-Based Expectation Equilibrium

Pré-publication, Document de travail: Families of normal-form two-player games are categorized by players into K analogy classes applying the K-means clustering technique to the data generated by the distributions of opponent's behavior. This results in Calibrated Analogy-Based Expectation Equilibria in which strategies are analogy-based expectation equilibria given the analogy partitions and analogy partitions are derived from the strategies by the K-means clustering algorithm. We discuss various concepts formalizing this, and observe that distributions over analogy partitions are sometimes required to guarantee existence. Applications to games with linear best-responses are discussed highlighting the differences between strategic complements and strategic substitutes.

Auteur(s)

Philippe Jehiel, Giacomo Weber

Date de publication
  • 2023
Mots-clés JEL
D44 D82 D90
Mots-clés
  • K-mean clustering
  • Analogy-based Expectation Equilibrium K-mean clustering
Référence interne
  • PSE Working Papers n°2023-21
Pages
  • 54 p.
Version
  • 1