Eductive stability may not imply evolutionary stability in the presence of information costs

Ahmad Naimzada and Marina Pireddu

Economics Letters, 2020, vol. 186, issue C

Abstract: Founded on a Muthian cobweb model, this study extends the evolutionary setting in Hommes and Wagener (2010), by assuming that agents face heterogeneous information costs. We prove that the equilibrium, when globally eductively stable, may be unstable under evolutionary learning.

Keywords: Muthian cobweb model; Heterogeneous agents; Evolutionary learning; Eductive stability; Information costs; Double stability threshold (search for similar items in EconPapers)
JEL-codes: B52 C62 D84 E32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Eductive stability may not imply evolutionary stability in the presence of information costs (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:186:y:2020:i:c:s0165176519302381

DOI: 10.1016/j.econlet.2019.06.019

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