DYNAMIC SELECTION IN NORMAL-FORM GAMES

Abstract

This paper investigates a class of dynamic selection processes for n-person normal-form games which includes the Brown-von Neumann-Nash dynamics. For (two-person) zero-sum games and for (n-person) potential games every limit set of these dynamics is a subset of the set of Nash-equilibria. Furthermore, under these dynamics the unique Nash-component of a zero-sum game is minimal asymptotically stable and for a potential game a smoothly connected component which is a local maximizer is minimal asymptotically stable.Dynamic selection process, limit set, stability, JEL Classification Number: C61, JEL Classification Number: C62, JEL Classification Number: C72