Replicator Dynamic Learning in Muth's Model of Price Movements
AbstractWe investigate the stability properties of Muth's model of price movements when agents choose a production level using replicator dynamic learning. It turns out that when there is a discrete set of possible production levels, possible stable states and stability conditions differ between adaptive learning and replicator dynamic learning. Furthermore, we show that the stability disparities between the two types of learning are due to the way asymptotic stability is defined under the replicator dynamics.
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Bibliographic InfoPaper provided by Department of Economics, West Virginia University in its series Working Papers with number 10-18.
Length: 25 pages
Date of creation: 2010
Date of revision:
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Asymptotic stability; replicator dynamics; cobweb model; E-stability; Nash equilibria.;
Find related papers by JEL classification:
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-02 (All new papers)
- NEP-EVO-2010-10-02 (Evolutionary Economics)
- NEP-GTH-2010-10-02 (Game Theory)
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