The Evolutionary Game of Poverty Traps

Edgar Sánchez Carrera (edgarjavier.sanchezcarrera@unifi.it)

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: We study an evolutionary game in which the individual behavior of the economic agents can lead the economy either into a low-level or a high-level equilibrium. The model represents two asymmetric populations, “leaders and followers”, where in each round an economic agent of population 1 is paired with a member of population 2. Our evolutionary game is a signaling game in which only the leader has private information. The leader moves first; the follower observes the leader's action, but not the leader's type, before choosing her own action. We found the equilibria both as self-confirming and evolutionarily stable strategies. Furthermore, considering an imitative behavior of the followers, we show that to overcome the poverty trap there exists a threshold value equals to the ratio "education costs-efficiency wages" of the number of high-profile economic agents

Keywords: Evolutionary games; imitation rule; poverty traps; replicator dynamics; signaling games; strategic complementarities (search for similar items in EconPapers)
JEL-codes: C70 C72 C73 I30 O10 O40 (search for similar items in EconPapers)
Date: 2009-02
New Economics Papers: this item is included in nep-cta, nep-evo and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://repec.deps.unisi.it/quaderni/555.pdf (application/pdf)

Related works:
Journal Article: THE EVOLUTIONARY GAME OF POVERTY TRAPS (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:555

Access Statistics for this paper

More papers in Department of Economics University of Siena from Department of Economics, University of Siena Contact information at EDIRC.
Bibliographic data for series maintained by Fabrizio Becatti (fabrizio.becatti@unisi.it).