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Dynamics of Individual Specialization and Global Diversification in Communities

Vivek S. Borkar·Sanjay Jain·Govindan Rangarajan
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Abstract

We discuss a model of an economic community consisting of $N$ interacting agents. The state of each agent at any time is characterized, in general, by a mixed strategy profile drawn from a space of $s$ pure strategies. The community evolves as agents update their strategy profiles in response to payoffs received from other agents. The evolution equation is a generalization of the replicator equation. We argue that when $N$ is sufficiently large and the payoff matrix elements satisfy suitable inequalities, the community evolves to retain the full diversity of available strategies even as individual agents specialize to pure strategies.

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Vivek S. Borkar, Sanjay Jain, Govindan Rangarajan. 1998-04-30. Dynamics of Individual Specialization and Global Diversification in Communities. https://arxiv.org/abs/adap-org/9804004

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