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Evolutionary stability of behavioural rules in bargaining

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  • Khan, Abhimanyu

Abstract

I study the evolutionary stability of behavioural rules in a bargaining game. Individuals draw random samples of strategies used in the past and respond to it by using a behavioural rule. Even though individuals actually respond to historical demands, a necessary condition for stability is the existence of a state such that it is as-if the individuals are hardwired to make the same demand. Furthermore, the state where all individuals demand half of the pie is the unique neutrally stable state; all other states are unstable in the face of an invasion by a mutant behavioural rule.

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  • Khan, Abhimanyu, 2018. "Evolutionary stability of behavioural rules in bargaining," MPRA Paper 90811, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90811
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    References listed on IDEAS

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    1. Abhimanyu Khan, 2021. "Evolution of conventions in games between behavioural rules," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 9(2), pages 209-224, October.

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    More about this item

    Keywords

    bargaining; evolution; stable behavioural rules; internal stability; external stability; equal split;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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