An application of the continuous time replicator dynamic to economics

  • Authors:

  • Eitaro Aiyoshi;Ryota Horie;Atsushi Maki

  • Affiliations:

  • Faculty of Engineering, Keio University, Tokyo 108-8345, Japan;Faculty of Engineering, Keio University, Tokyo 108-8345, Japan;Faculty of Business and Commerce, Keio University, Tokyo 108-8345, Japan

  • Venue:
  • Mathematics and Computers in Simulation - Selected papers of the MSSANZ/IMACS 13th biennial conference on modelling and simulation, Hamilton, New Zealand, December 1999
  • Year:
  • 2002

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Abstract

The present analysis is an application of the continuous time replicator dynamic to economics. Three types of problems are considered under conditions of a normalized constraint and non-negative constrains. The story of the following models is as follows. There are three or more corporations in a market. They behave so as to maximize their profits defined by the difference between their sales and cost functions with conjectural variations. In economics, there are many models concerning conjectural variation and Nash equilibrium. The present approach may be useful to examine the process of reaching equilibrium.