Glossary of game theory terms.

Evolutionary Game Theory

Evolutionary game theory provides a dynamic framework for analyzing repeated interaction. Originally modeled after "natural models" of fitness, a population may consist of people genetically "programmed" to play a certain strategy, and who reproduce proportionally to their payoffs. Hence, strategies which do poorly eventually die off, while well-performing strategies thrive. These replicator dynamics, modeled by equal chances of any two players meeting in a given period, have been extended to spatial models, in which colonies, or local conventions, may emerge.

Low Rationality

One appeal of evolutionary game theory is that it allows for relaxation of the traditional fully-informed rational actor assumption. People, or agents, are assumed to be myopic, in the sense that strategy selection is driven by natural selection, imitation, or genetics, and not inductive reasoning. Nevertheless, in many settings, evolutionary approaches reaffirm traditional solution concepts as the population, eventually, plays Nash equilibrium strategies.

updated: 15 August 2005