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Evolutionary Equilibria in Network Markets

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  • Thomas J. Webster

    (Pace University)

Abstract

Evolutionary game theory predicts that new survival strategies arise from random mutations. Over time, mutants genetically encoded with the superior survival strategy will have more offspring and nonmutants will be driven from the population. This paper argues that the introduction of a mutant technology with strong positive feedback and cascade effects into the market for a network good may result in something like an evolutionarily stable equilibrium that increases social welfare.

Suggested Citation

  • Thomas J. Webster, 2016. "Evolutionary Equilibria in Network Markets," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(3), pages 325-334, September.
    • Handle: RePEc:kap:atlecj:v:44:y:2016:i:3:d:10.1007_s11293-016-9503-9
    DOI: 10.1007/s11293-016-9503-9
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    References listed on IDEAS

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    6. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 797-817.
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