Munich Personal RePEc Archive

On the Existence of Pareto Optimal Endogenous Matching

Dai, Darong (2012): On the Existence of Pareto Optimal Endogenous Matching. Published in: Economic Research Guardian , Vol. 2, No. 2


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In the current paper, we study the asymmetric normal-form game between two heterogeneous groups of populations by employing the stochastic replicator dynamics driven by Lévy process. A new game equilibrium, i.e., the game equilibrium of a stochastic differential cooperative game on time, is derived by introducing optimal-stopping technique into evolutionary game theory, which combines with the Pareto optimal standard leads us to the existence of Pareto optimal endogenous matching.

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