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://www.econ.iastate.edu/tesfatsi/tnghome.htm
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- McFadzean, David & Tesfatsion, Leigh, 1999.
"A C++ Platform for the Evolution of Trade Networks,"
Society for Computational Economics, vol. 14(1-2), pages 109-34, October.
- 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.
- David MCFADZEAN & Leigh TESFATSION, 1996. "A C++ Platform For The Evolution Of Trade Networks," Economic Report 39, Iowa State University Department of Economics.
- Stanley, E.A. & Ashlock, Daniel & Tesfatsion, Leigh, 1994. "Iterated Prisoner's Dilemma with Choice and Refusal of Partners," Staff General Research Papers 11180, Iowa State University, Department of Economics.
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"Discrete Choice with Social Interactions,"
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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.
- Ashlock, Daniel & Smucker, Mark D. & Stanley, E. Ann & Tesfatsion, Leigh S., 1996. "Preferential Partner Selection in an Evolutionary Study of Prisoner's Dilemma," Staff General Research Papers 1687, Iowa State University, Department of Economics.
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"Economies with Interacting Agents,"
94-05-030, Santa Fe Institute.
- Hirshlifer, David & Rassmusen, Eric, 1989. "Cooperation in a repeated prisoners' dilemma with ostracism," Journal of Economic Behavior & Organization, Elsevier, vol. 12(1), pages 87-106, August.
- Yannis M. Ioannides, 1996. "Evolution of Trading Structures," Working Papers 96-04-020, Santa Fe Institute.
- Mailath, G.J. & Samuelson, L. & Shaked, A., 1994.
"Evolution and Endogenous Interations,"
9426, Wisconsin Madison - Social Systems.
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