Torben Klarl
On the stability of equilibria in replicator
dynamics modelling:
an application in industrial dynamics considering resource constraints
Abstract:
Replicator dynamic modelling (rdm) is used to discuss industrial
evolution problems with heterogeneous agents. However, some of the
models tend to be very complex and, therefore, analytical solutions
cannot be obtained. Hence, the paper proposes to start with a relatively
simple model and check its stability of the equilibria before expanding
the model. This strategy is more effective than relying on simulation
based studies where instability cannot be ruled out ex ante. Thus, the
aim of this paper is to introduce a stability check for rdm, especially,
if one ore more real Eigenvalues with value zero occur. Besides the
(Strogatz, 1994) and (Hilborn, 1994) local stability theorem, this
method provides an alternative and more flexible procedure for stability
analysis for rdm. To apply this approach, an industrial replicator
dynamic model containing three differential equations is set up.
JEL: B25, C62
Paper:
Paper available as pdf-file.
Beitrag Nr. 298, Volkswirtschaftliche Diskussionsreihe, Institut
für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Torben
Klarl, University of Augsburg, Department of Economics,
D-86135
Augsburg,
Germany, phone +49-821-598-4177, fax +49-821-598-4229,
email: torben.alexander.klarl@wiwi.uni-augsburg.de
v.
K., 29.02.2008