Essays on applied economics



Download 2.41 Mb.
Page21/105
Date09.08.2018
Size2.41 Mb.
1   ...   17   18   19   20   21   22   23   24   ...   105
The mean payoff of the population is:

. (3.4)

The value of is the social cost.
When , some drivers will find it profitable to switch from the strategy of taking low or medium care to the strategy of taking high care, and will increase. The payoff differential exerts evolutionary pressure on the population composition. The standard model of the movement of the composition of the population in evolutionary game theory is that of the replicator dynamics15, (TAYLOR AND JONKER [1978]), defined as:

Download 2.41 Mb.

Share with your friends:
1   ...   17   18   19   20   21   22   23   24   ...   105




The database is protected by copyright ©sckool.org 2020
send message

    Main page