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Evolutionary Game Theory and the Modelling of Economic Behavior

Author

Listed:
  • Gerard van der Laan

    (Vrije Universiteit Amsterdam)

  • A.F. Tieman

    (Vrije Universiteit Amsterdam)

Abstract

This discussion paper resulted in a publication in 'De Economist' , 1998, 146, 59-89. Since the 1950's economists applied game theoretical concepts to a wide variety of economic problems. The Nash equilibrium concept has proven to be a powerful instrument in analyzing the outcome of economic processes. Since the late 1980's economists also show a growing interest in the application of evolutionary game theory. This paper discusses the main concepts of evolutionarygame theory and their applicability to economic issues. Whereas traditional game theory focusses on the static Nash equilibria as the possible outcomes of the game, evolutionary game theory teaches us to model explictly the behavior of individuals outside equilibrium. This may provide us with a better understanding of the dynamic forces within a society of interacting individuals.

Suggested Citation

  • Gerard van der Laan & A.F. Tieman, 1996. "Evolutionary Game Theory and the Modelling of Economic Behavior," Tinbergen Institute Discussion Papers 96-172/8, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19960172
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    References listed on IDEAS

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    More about this item

    Keywords

    noncooperative symmetric bimatrix game; evolutionary stable strategy; replicator dynamics; learning and imitation; metastrategy; stable population;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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