The instability of backward induction in evolutionary dynamics
AbstractThis paper continues the work initiated in . We adopt the same model as in . We show that the non-backward-induction equilibrium component may be evolutionarily stable for any population size in a finite stopping game where the two equilibrium components are terminated by different players. A surprising result is that the backward induction equilibrium component may not be evolutionarily stable for large populations. Finally, we study the evolutionary stability result in a different limiting process where the expected number of mutations per generation is bounded away from both zero and infinity.
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Bibliographic InfoPaper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp633.
Length: 54 pages
Date of creation: Jan 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-16 (All new papers)
- NEP-EVO-2013-03-16 (Evolutionary Economics)
- NEP-GTH-2013-03-16 (Game Theory)
- NEP-MIC-2013-03-16 (Microeconomics)
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