CFDP 1643

A ‘Dual’-Improved Shortcut to the Long Run

Author(s): 

Publication Date: March 2008

Pages: 29

Abstract: 

I use the theories of duality and optimal branchings to find a necessary and sufficient characterization of stochastically stable limit sets (SSLS) that helps improve the radius — modified coradius test of Ellison (2000). The improved shortcut I offer may permit the identification of SSLS when Ellison’s radius — modified coradius test fails to identify any, or may be able to pinpoint the true SSLS in cases where Ellison’s test identifies only a superset. I also demonstrate precisely why the radius — modified coradius test is not universally applicable and illuminate the connection between the modified coradius and the Lagrange multipliers of the optimal branching problem.

Keywords: 

Evolutionary games; Stochastic stability; Optimal branchings; Extended radius; Extended coradius; Modified coradius

JEL Classification Codes:  C73