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On the Existence of Pareto Optimal Endogenous Matching

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  • Dai, Darong

Abstract

In the current paper, we study the asymmetric normal-form game between two heterogeneous groups of populations by employing the stochastic replicator dynamics driven by Lévy process. A new game equilibrium, i.e., the game equilibrium of a stochastic differential cooperative game on time, is derived by introducing optimal-stopping technique into evolutionary game theory, which combines with the Pareto optimal standard leads us to the existence of Pareto optimal endogenous matching.

Suggested Citation

  • Dai, Darong, 2012. "On the Existence of Pareto Optimal Endogenous Matching," MPRA Paper 43125, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:43125
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    More about this item

    Keywords

    Stochastic differential cooperative game on time; Endogenous matching; Fair matching; Pareto optimality; Adaptive learning;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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