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On the Existence of Pareto Optimal Endogenous Matching

  • Dai, Darong
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    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.

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    File URL: http://mpra.ub.uni-muenchen.de/43125/1/MPRA_paper_43125.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43125.

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    Date of creation: 02 Dec 2012
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    Handle: RePEc:pra:mprapa:43125
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    19. Robert J Aumann, 1999. "Agreeing to Disagree," Levine's Working Paper Archive 512, David K. Levine.
    20. Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
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