Working Paper

Finite-Population "Mass-Action" and Evolutionary Stability

Axel Bernergard, Karl Wärneryd
CESifo, Munich, 2011

CESifo Working Paper No. 3378

Nash proposed an interpretation of mixed strategies as the average pure-strategy play of a population of players randomly matched to play a normal-form game. If populations are finite, some equilibria of the underlying game have no such corresponding “mass-action” equilibrium. We show that for mixed strategy equilibria of 2 × 2 games, the requirement of such a correspondence is equivalent to neutral evolutionary stability.

CESifo Category
Empirical and Theoretical Methods
Behavioural Economics
Keywords: mass action, finite population games, evolutionary stability
JEL Classification: C720, C730