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Lyapunov stability in an evolutionary game theory model of the labor market

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  • Araujo, Ricardo Azevedo
  • Moreira, Helmar Nunes

Abstract

In this paper the existence and stability of equilibria in an evolutionary game theory model of the labor market is studied by using the Lyapunov method. The model display multiple equilibria and it is shown that the Nash Equilibria of the static game are evolutionary stable equilibria in the game theory evolutionary set up. In this vein a complete characterization of the dynamics of an evolutionary model of the labor market is provided.

Suggested Citation

  • Araujo, Ricardo Azevedo & Moreira, Helmar Nunes, 2011. "Lyapunov stability in an evolutionary game theory model of the labor market," MPRA Paper 36994, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36994
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    More about this item

    Keywords

    Evolutionary game theory approach; labour market; informal economy; Lyapunov function;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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