On the existence and stability of Pareto optimal endogenous matching with fairness
In the current paper, we study the asymmetric normal-form game between two heterogeneous groups of populations by employing the stochastic replicator dynamics driven by Lévy process. A new game equilibrium, i.e., the game equilibrium of a stochastic differential cooperative game on time, is derived by introducing optimal-stopping technique into evolutionary game theory, which combines with the Pareto optimal standard leads us to the existence of Pareto optimal endogenous matching. Moreover, stability of the Pareto optimal endogenous matching is confirmed by essentially using the well-known Girsanov Theorem.
|Date of creation:||15 Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luca Anderlini, 1995.
"Communication, Computability and Common Interest Games,"
Game Theory and Information
- Anderlini, Luca, 1999. "Communication, Computability, and Common Interest Games," Games and Economic Behavior, Elsevier, vol. 27(1), pages 1-37, April.
- Anderlini, L., 1990. "Communication, Computability And Common Interest Games," Papers 159, Cambridge - Risk, Information & Quantity Signals.
- Canning, D., 1990.
"Average Behaviour In Learning Models,"
156, Cambridge - Risk, Information & Quantity Signals.
- Okuno-Fujiwara Masahiro & Postlewaite Andrew, 1995. "Social Norms and Random Matching Games," Games and Economic Behavior, Elsevier, vol. 9(1), pages 79-109, April.
- Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May.
- Binmore, Ken & Samuelson, Larry, 1997. "Muddling Through: Noisy Equilibrium Selection," Journal of Economic Theory, Elsevier, vol. 74(2), pages 235-265, June.
- A. Cabrales, 2010.
"Stochastic Replicator Dynamics,"
Levine's Working Paper Archive
489, David K. Levine.
- Jordan J. S., 1993. "Three Problems in Learning Mixed-Strategy Nash Equilibria," Games and Economic Behavior, Elsevier, vol. 5(3), pages 368-386, July.
- Frank Riedel, 2009. "Optimal Stopping With Multiple Priors," Econometrica, Econometric Society, vol. 77(3), pages 857-908, 05.
- Darong Dai, 2012. "Stochastic Versions of Turnpike Theorems in the Sense of Uniform Topology," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 381-423, November.
- Fudenberg, Drew & Harris, Christopher, 1992.
"Evolutionary Dynamics with Aggregate Shocks,"
IDEI Working Papers
13, Institut d'Économie Industrielle (IDEI), Toulouse.
- Selten, Reinhard & Stoecker, Rolf, 1986. "End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 47-70, March.
- Kirchkamp, Oliver & Nagel, Rosemarie, 2007. "Naive learning and cooperation in network experiments," Games and Economic Behavior, Elsevier, vol. 58(2), pages 269-292, February.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40457. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.