Economic Darwinism

Publikation: Working paper › Forskning

Standard

Economic Darwinism. / Sloth, Birgitte; Whitta-Jacobsen, Hans Jørgen.

Cph. : Centre for Industrial Economics, Department of Economics, University of Copenhagen, 2006.

Publikation: Working paper › Forskning

Harvard

Sloth, B & Whitta-Jacobsen, HJ 2006 'Economic Darwinism' Centre for Industrial Economics, Department of Economics, University of Copenhagen, Cph.

APA

Sloth, B., & Whitta-Jacobsen, H. J. (2006). Economic Darwinism. Centre for Industrial Economics, Department of Economics, University of Copenhagen.

Vancouver

Sloth B, Whitta-Jacobsen HJ. Economic Darwinism. Cph.: Centre for Industrial Economics, Department of Economics, University of Copenhagen. 2006.

Author

Sloth, Birgitte ; Whitta-Jacobsen, Hans Jørgen. / Economic Darwinism. Cph. : Centre for Industrial Economics, Department of Economics, University of Copenhagen, 2006.

Bibtex

@techreport{51ed66d085d611dbbee902004c4f4f50,
title = "Economic Darwinism",
abstract = "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",
keywords = "Faculty of Social Sciences, evolutionary game theory, Darwinian evolution, mutation, economic selection, evolutionary equilibrium, stochastic stability",
author = "Birgitte Sloth and Whitta-Jacobsen, {Hans J{\o}rgen}",
note = "JEL Classification: C72",
year = "2006",
language = "English",
publisher = "Centre for Industrial Economics, Department of Economics, University of Copenhagen",
type = "WorkingPaper",
institution = "Centre for Industrial Economics, Department of Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - Economic Darwinism

AU - Sloth, Birgitte

AU - Whitta-Jacobsen, Hans Jørgen

N1 - JEL Classification: C72

PY - 2006

Y1 - 2006

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 - mutation

KW - economic selection

KW - evolutionary equilibrium

KW - stochastic stability

M3 - Working paper

BT - Economic Darwinism

PB - Centre for Industrial Economics, Department of Economics, University of Copenhagen

CY - Cph.

ER -

ID: 312892