EconStor >
Stockholm School of Economics >
EFI - The Economic Research Institute, Stockholm School of Economics >
SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/56359
  
Title:The target projection dynamic PDF Logo
Authors:Tsakas, Elias
Voornefeld, Mark
Issue Date:2007
Series/Report no.:SSE/EFI Working Paper Series in Economics and Finance 670
Abstract:This paper studies the target projection dynamic, which is a model of myopic adjustment for population games. We put it into the standard microeconomic framework of utility maximization with control costs. We also show that it is well-behaved, since it satisfies the desirable properties: Nash stationarity, positive correlation, and existence, uniqueness, and continuity of solutions. We also show that, similarly to other well-behaved dynamics, a general result for elimination of strictly dominated strategies cannot be established. Instead we rule out survival of strictly dominated strategies in certain classes of games. We relate it to the projection dynamic, by showing that the two dynamics coincide in a subset of the strategy space. We show that strict equilibria, and evolutionarily stable strategies in $2\times2$ games are asymptotically stable under the target projection dynamic. Finally, we show that the stability results that hold under the projection dynamic for stable games, hold under the target projection dynamic too, for interior Nash equilibria.
Subjects:target projection dynamic
noncooperative games
adjustment
JEL:C72
Document Type:Working Paper
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

Files in This Item:
File Description SizeFormat
539477893.pdf197.95 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/56359

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.