In and out of equilibrium: evolution in repeated games
1.30 PM, Seminar room (first floor), Department of Economics and Management
Speaker: Matthijs van Veelen, University of Amsterdam
We explore evolutionary dynamics in repeated games, with and without discounting, with and without complexity costs, and with and without population structure. In absence of complexity costs and population structure, the dynamics are driven by indirect invasions. Indirect invasions are stepping stone paths out of equilibrium, where neutral mutants open doors for subsequent mutants, that have a selective advantage only after the neutral mutant establishes itself through drift. Populations playing repeated prisoners dilemmas then typically wander from one equilibrium to the other through series of indirect invasions. Complexity costs and population structure allow for more complex behaviour, but also here indirect invasions are essential to understanding the dynamics.