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Dynamics of individual specialization and global diversification in communities

✍ Scribed by Vivek S. Borkar; Sanjay Jain; Govindan Rangarajan

Publisher
John Wiley and Sons
Year
1998
Tongue
English
Weight
121 KB
Volume
3
Category
Article
ISSN
1076-2787

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✦ Synopsis

We discuss a model of an economic community consisting of N interacting agents. The state of each agent at any time is characterized, in general, by a mixed strategy profile drawn from a space of s pure strategies. The community evolves as agents update their strategy profiles in response to payoffs received from other agents. The evolution equation is a generalization of the replicator equation. We argue that when N is sufficiently large and the payoff matrix elements satisfy suitable inequalities, the community evolves to retain the full diversity of available strategies even as individual agents specialize to pure strategies.

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