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Journal of Economic Theory
Article . 2001 . Peer-reviewed
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Article . 2001
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Article . 2001
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Research . 1997
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Nash Equilibrium and the Evolution of Preferences

Nash equilibrium and the evolution of preferences
Authors: Jeffrey C. Ely; Okan Yilankaya;

Nash Equilibrium and the Evolution of Preferences

Abstract

The authors propose a new approach concerning evolutionary equilibrium models, e.g. EES, introduced by \textit{J. Maynard Smith} [Evolution and the theory of games, Cambridge Univ. Press (1982; Zbl 0526.90102)]. By the model proposed one analyzes the situation in which a population of \(n\) players is randomly matched to play a normal form game \(G\). The payoffs of this game, from an economical point of view represent the fitness associated with the various outcomes. Unlike the standard EES framework, the \(n\) players here are rational decision-makers. They have preferences over outcomes and they form conjectures about the behavior of the other agents. Based on these they make choices which are optimal given their preferences. These preferences are represented by an evolutionary process. The authors finally show that when evolution selects individuals on the basis of the fitness of the actions they take, the aggregate distribution of action-profiles has to be a Nash equilibrium of \(G\).

Keywords

ddc:330, \(n\)-person games, \(n>2\), evolutionary equilibrium models, Individual preferences, preferences, Nash equilibrium

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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
69
Top 10%
Top 10%
Top 10%
bronze