DIVERSITY AND ADAPTATION IN LARGE POPULATION GAMES

Abstract

We consider a version of large population games whose players compete for resources using strategies with adaptable preferences. The system efficiency is measured by the variance of the decisions. In the regime where the system can be plagued by the maladaptive behavior of the players, we find that diversity among the players improves the system efficiency, though it slows the convergence to the steady state. Diversity causes a mild spread of resources at the transient state, but reduces the uneven distribution of resources in the steady state.