Essays on applied economics



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Evolutionary game theory is widely used in economics, for example in choosing the most likely equilibrium from all possible Nash equilibriums. Replicator dynamics allows us to compare the convergence properties under different liability rules in a given social environment and with a same learning pattern.
Simple calculations using expressions (3.1)-(3.4) show that the dynamics of a population taking high care is exactly the same17 under both CN and NCN, and can be written as:
,
with

(3.6)
Under Assumption 1 and Assumption 2, we can check that each term in the above equation is always positive, i.e., at any population composition with . The proportion of drivers taking efficient cares always strictly increases.

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