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Lyapunov stability in an evolutionary game theory model of the labour market

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  • Ricardo Azevedo Araujo

    (University of Brasília, Brazil)

  • Helmar Nunes Moreira

    (University of Brasília, Brazil)

Abstract

In this paper the existence and stability of equilibriums in an evolutionary game theory model of the labour market is studied by using the Lyapunov method. The model displays multiple equilibriums and it is shown that the Nash equilibriums of the static game are evolutionary stable equilibrium in the game theory evolutionary set up. A complete characterization of the dynamics of an evolutionary model of the labour market is provided.

Suggested Citation

  • Ricardo Azevedo Araujo & Helmar Nunes Moreira, 2014. "Lyapunov stability in an evolutionary game theory model of the labour market," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(1), pages 41-53.
    • Handle: RePEc:anp:econom:v:15:y:2014:i:1:41_53
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    More about this item

    Keywords

    Evolutionary game theory approach; Labour market; Informal economy; Lyapunov function;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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