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The instability of backward induction in evolutionary dynamics

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  • Zibo Xu

Abstract

This paper continues the work initiated in [19]. We adopt the same model as in [19]. We show that the non-backward-induction equilibrium component may be evolutionarily stable for any population size in a finite stopping game where the two equilibrium components are terminated by different players. A surprising result is that the backward induction equilibrium component may not be evolutionarily stable for large populations. Finally, we study the evolutionary stability result in a different limiting process where the expected number of mutations per generation is bounded away from both zero and infinity.

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  • Zibo Xu, 2013. "The instability of backward induction in evolutionary dynamics," Discussion Paper Series dp633, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    • Handle: RePEc:huj:dispap:dp633
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