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Unformatted text preview: are p = 0, 2/3 and 1. e) Starting at p(0) = 0.5, dp/dt < 0, and remains so for all p < 0.5. Therefore, p(t) will converge to 0; the (R,R) equilibrium. Indeed, the dynamics will converge to (R,R) for all p(0) < 2/3, and converge to (L,L) for all p(0) > 2/3. The basin of attraction for the bad (R,R) equilibrium is twice as large as the basin of attraction for the good (L,L) equilibrium. Note that the mixed-strategy NE at 2/3 is unstable since any perturbation will cause the population p(t) to diverge away from 2/3....
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This note was uploaded on 06/09/2011 for the course ECON 354 taught by Professor Econ during the Spring '11 term at University of Texas at Austin.
- Spring '11