A Trade Network Game with Endogenous Partner Selection
This paper develops an evolutionary trade network game (TNG) that combines evolutionary game play with endogenous partner selection. Successive generations of resource-constrained buyers and sellers choose and refuse trade partners on the basis of continually updated expected payoffs. Trade partner selection takes place in accordance with a modified Gale-Shapley matching mechanism, and trades are implemented using trade strategies evolved via a standardly specified genetic algorithm. The trade partnerships resulting from the matching mechanism are shown to be core stable and Pareto optimal in each successive trade cycle. Nevertheless, computer experiments suggest that these static optimality properties may be inadequate measures of optimality from an evolutionary perspective. Related work can be accessed at: http://www2.econ.iastate.edu/tesfatsi/tnghome.htm
|Date of creation:||01 Jan 1997|
|Date of revision:|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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- Dan Ashlock & Mark D. Smucker & E. Ann Stanley & Leigh Tesfatsion, 1995.
"Preferential Partner Selection in an Evolutionary Study of Prisoner's Dilemma,"
Game Theory and Information
9501002, EconWPA, revised 20 Jan 1995.
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UC3M Working papers. Economics
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- McFadzean, David & Tesfatsion, Leigh S., 1999.
"A C++ Platform for the Evolution of Trade Networks,"
Staff General Research Papers
1639, Iowa State University, Department of Economics.
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Game Theory and Information
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