AbstractWe define an evolutionary process of âeconomic Darwinismâ for playing-the-field, symmetric games. The process captures two forces. One is âeconomic selectionâ: if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being replaced by an arbitrary behavior. The other is âmutationâ: any behavior has at any point in time a strictly positive, very small probability of shifting to an arbitrary behavior. We show that behavior observed frequently is in accordance with âevolutionary equilibriumâ, a static equilibrium concept suggested in the literature. Using this result, we demonstrate that generally under positive (negative) externalities, economic Darwinism implies even more under- (over-) activity than does Nash equilibrium.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Theory and Decision.
Volume (Year): 70 (2011)
Issue (Month): 3 (March)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100341
Evolutionary game theory; Darwinian evolution; Economic selection; Mutation; Evolutionary equilibrium; Stochastic stability;
Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Bergin & Dan Bernhardt, 2006.
"Cooperation through Imitation,"
1042, Queen's University, Department of Economics.
- Corchon, Luis C., 1994.
"Comparative statics for aggregative games the strong concavity case,"
Mathematical Social Sciences,
Elsevier, vol. 28(3), pages 151-165, December.
- Corchón, Luis C., . "Comparative Statics for Aggregative Games: The Strong Concavity Case," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/4188, Universidad Carlos III de Madrid.
- Alex Possajennikov, 2001.
"Evolutionary Foundations of Aggregate-Taking Behavior,"
Discussion Papers in Economics
01_10, University of Dortmund, Department of Economics.
- Alex Possajennikov, 2003. "Evolutionary foundations of aggregate-taking behavior," Economic Theory, Springer, vol. 21(4), pages 921-928, 06.
- Carlos Alós-Ferrer & Ana Ania, 2005. "The evolutionary stability of perfectly competitive behavior," Economic Theory, Springer, vol. 26(3), pages 497-516, October.
- Schaffer, Mark E., 1989. "Are profit-maximisers the best survivors? : A Darwinian model of economic natural selection," Journal of Economic Behavior & Organization, Elsevier, vol. 12(1), pages 29-45, August.
- James Bergin & Dan Bernhardt, 2004. "Comparative Learning Dynamics," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(2), pages 431-465, 05.
- Burkhard Schipper, 2002.
"Submodularity and the Evolution of Walrasian Behavior,"
Bonn Econ Discussion Papers
bgse4_2003, University of Bonn, Germany.
- Burkhard C. Schipper, 2004. "Submodularity and the evolution of Walrasian behavior," International Journal of Game Theory, Springer, vol. 32(4), pages 471-477, 08.
- Fernando Vega-Redondo, 1997.
"The Evolution of Walrasian Behavior,"
Econometric Society, vol. 65(2), pages 375-384, March.
- Stegeman, Mark & Rhode, Paul, 2004. "Stochastic Darwinian equilibria in small and large populations," Games and Economic Behavior, Elsevier, vol. 49(1), pages 171-214, October.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.