Evolution with Mutations Driven by Control Costs

Tilburg University, CentER Discussion Paper Series No. 1998-94

14 Pages Posted: 27 Sep 1999

See all articles by Eric van Damme

Eric van Damme

TILEC and CentER, Tilburg University

Jorgen W. Weibull

Stockholm School of Economics - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: 1998

Abstract

Bergin and Lipman (1996) show that the refinement effect from the random mutations in the adaptive dynamics in Kandori, Mailath and Rob (1993) and Young (1993) is due to restrictions on how these mutation rates vary across population states. We here model these mutation rates as endogenously determined mistake probabilities, by assuming that players at some cost or disutility can control their mistake probability, i.e., the probability of implementing another pure strategy than intended. This is shown to corroborate the result in Kandori-Mailath-Rob and Young that the risk-dominant equilibrium is selected in 2 X 2-coordination games.

JEL Classification: C70

Suggested Citation

van Damme, Eric E.C. and Weibull, Jorgen W., Evolution with Mutations Driven by Control Costs (1998). Tilburg University, CentER Discussion Paper Series No. 1998-94, Available at SSRN: https://ssrn.com/abstract=166484 or http://dx.doi.org/10.2139/ssrn.166484

Eric E.C. Van Damme (Contact Author)

TILEC and CentER, Tilburg University ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 3045 (Phone)
+31 13 466 3066 (Fax)

Jorgen W. Weibull

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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