Evolution with Mutations Driven by Control Costs
AbstractBergin and Lipman (1996) show that the refinement effect from the random mutations in the adaptive dynamics in Kandori, Mailath and Rob (1993) and Young (1993) is due to restrictions on how these mutation rates vary across population states. We here model these mutation rates as endogenously determined mistake probabilities, by assuming that players at some cost or disutility can control their mistake probability, i.e., the probability of implementing another pure strategy than intended. This is shown to corroborate the result in Kandori-Mailath-Rob and Young that the risk-dominant equilibrium is selected in 2£ 2-coordination games.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1998-94.
Date of creation: 1998
Date of revision:
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Web page: http://center.uvt.nl
Other versions of this item:
- Weibull, Jörgen W. & van Damme, Eric, 1998. "Evolution with Mutations Driven by Control Costs," Working Paper Series 501, Research Institute of Industrial Economics.
- Eric Van Damme & Jorgen W Weibull, 1999. "Evolution with Mutations Driven by Control Costs," Levine's Working Paper Archive 2113, David K. Levine.
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-03-08 (All new papers)
- NEP-EVO-1999-03-08 (Evolutionary Economics)
- NEP-GTH-1999-03-08 (Game Theory)
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