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Stable Biased Sampling

Häfner, Samuel. (2015) Stable Biased Sampling. WWZ Working Papers, 2015 (03).

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Abstract

This paper presents a model in which sampling biases are evolutionary stable. We consider the sampling best response dynamics for a two-strategy population game having a unique equilibrium that is in mixed strategies. Allowing players to use differing sampling procedures, we model evolutionary competition between such procedures with a variant of the replicator dynamics that discriminates on the basis of average fitness among players with the same procedure. Using results on slow-fast systems, we find that the sampling bias in stable procedures is generically non-zero, that the size of the bias is the more extreme the closer the mixed equilibrium is to the boundary of (0,1), and that, if sample size increases, then the bias eventually decreases. Based on these observations, we argue that the presence of biases can be explained by an evolutionary second-best effect correcting for suboptimal choices induced by playing best response to small samples.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Mikroökonomische Theorie (Nöldeke)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Häfner, Samuel
Item Type:Working Paper
Publisher:WWZ, University of Basel
Number of Pages:30
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2015/03
Last Modified:08 Mar 2018 13:31
Deposited On:08 Mar 2018 13:31

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