Evolutive Equilibrium Selection I: Symmetric Two Player Binary Choice Games
نویسنده
چکیده
The aim of the paper is the construction of a distributional model which enables the study of the evolutionary dynamics that arise for symmetric games, and the equilibrium selection mechanisms that originate from such processes. The evolution of probability distributions over the state variables is studied using the Fokker-Planck diffusion equation. Equilibrium selection using the ’’basin of attraction’’ approach, and a selection process suggested by Pontryagin are contrasted. Examples are provided for all generic 2-person symmetric binary choice games. JEL Classification: C78
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