Econ 4010 Lecture 34

Econ 4010 Lecture 34 - Evolutionary Game...

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<Lecture 34> Evolutionary Game Theory Many people have attempted to use traditional game theory to analyze economic problems. However, traditional game theory is a "static" theory, which reduces its usefulness in analyzing these very sorts of situations. Evolutionary game theory improves upon traditional game theory by providing a dynamics describing how the situations will change over time. What is novel about evolutionary game theory is that moves are not chosen by rational agents. Instead, agents are typically hard-wired with particular strategies, and success for a strategy is defined in terms of the number of copies that a strategy will leave of itself to play in the games of succeeding generations. The strategies themselves are therefore the players, and the games they play are dynamic rather than static. Dynamic Prisoner's Dilemma . Deny Confess Deny -1, -1 - 9, 0 Confess 0, - 9 -6, -6 In the Prisoner's Dilemma, two men accused of committing a crime together are interrogated separately. Obviously, for the greater good the two players should be nice and cooperate to deny the crime. Problem is, logically they shouldn't. Since both never know what the other will do, and each is trying to
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This note was uploaded on 03/31/2009 for the course ECON 4010 taught by Professor Cheng during the Spring '09 term at USC.

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Econ 4010 Lecture 34 - Evolutionary Game...

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