Economic Darwinism
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Economic Darwinism. / Sloth, Birgitte; Whitta-Jacobsen, Hans Jørgen.
I: Theory and Decision, Bind 70, Nr. 3, 04.2011, s. 385-398.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Economic Darwinism
AU - Sloth, Birgitte
AU - Whitta-Jacobsen, Hans Jørgen
PY - 2011/4
Y1 - 2011/4
N2 - We define an evolutionary process of "economic Darwinism" for playing the field, symmetric games. The process captures two forces. One is "economic selection": if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being replaced by an arbitrary behavior. The other is "mutation": any behavior has at any point in time a strictly positive, very small probability of shifting to an arbitrary behavior. We show that behavior observed frequently is in accordance with "evolutionary equilibrium", a static equilibrium concept suggested in the literature. Using this result, we demonstrate that generally under positive (negative) externalities, economic Darwinism implies even more under- (over-)activity than does Nash equilibrium.
AB - We define an evolutionary process of "economic Darwinism" for playing the field, symmetric games. The process captures two forces. One is "economic selection": if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being replaced by an arbitrary behavior. The other is "mutation": any behavior has at any point in time a strictly positive, very small probability of shifting to an arbitrary behavior. We show that behavior observed frequently is in accordance with "evolutionary equilibrium", a static equilibrium concept suggested in the literature. Using this result, we demonstrate that generally under positive (negative) externalities, economic Darwinism implies even more under- (over-)activity than does Nash equilibrium.
KW - Faculty of Social Sciences
KW - evolutionary game theory
KW - Darwinian evolution
KW - economic selection
KW - mutation
KW - evolutionary equilibrium
KW - stochastic stability
U2 - 10.1007/s11238-009-9165-z
DO - 10.1007/s11238-009-9165-z
M3 - Journal article
VL - 70
SP - 385
EP - 398
JO - Theory and Decision
JF - Theory and Decision
SN - 0040-5833
IS - 3
ER -
ID: 17214741