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In and out of equilibrium I: Evolution of strategies in repeated games with discounting

Listed author(s):
  • García, Julián
  • van Veelen, Matthijs
Registered author(s):

    In the repeated prisoner's dilemma there is no strategy that is evolutionarily stable, and a profusion of neutrally stable ones. But how stable is neutrally stable? We show that in repeated games with large enough continuation probabilities, where the stage game is characterized by a conflict between individual and collective interests, there is always a neutral mutant that can drift into a population that is playing an equilibrium, and create a selective advantage for a second mutant. The existence of stepping stone paths out of any equilibrium determines the dynamics in finite populations playing the repeated prisoner's dilemma.

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    File URL: http://www.sciencedirect.com/science/article/pii/S002205311500201X
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    Article provided by Elsevier in its journal Journal of Economic Theory.

    Volume (Year): 161 (2016)
    Issue (Month): C ()
    Pages: 161-189

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    Handle: RePEc:eee:jetheo:v:161:y:2016:i:c:p:161-189
    DOI: 10.1016/j.jet.2015.11.007
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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