AF- Revisiting Evolutionary Game Theory

Corresponding chapters

Duration: 50 minutes

Objectives

  • Re visit evolutionary game theory.

Notes

Consider the following matrix:

\[\begin{split}A = \begin{pmatrix} 2 & 0 \\ 0 & 1 \end{pmatrix}\end{split}\]

Ask students in pairs to obtain all potential candidates for evolutionary stable strategies

This corresponds to finding the symmetric (where both players do the same thing) Nash equilibria of the corresponding game \((A, A^T)\).

We have two pure symmetric NE:

\[((1, 0), (1, 0))\qquad ((0, 1), (0, 1))\]

The mixed NE is found by solving the indifference equations:

\[\begin{split}\begin{align*} u_r((1, 0), (y, 1- y)) & = u_r((0, 1), (y, 1 - y))\\ 2y & = (1 - y)\\ y & = 1 / 3 \end{align*}\end{split}\]

Similarly for the row player:

\[\begin{split}\begin{align*} u_c((x, 1- x), (1, 0)) & = u_c((x, 1 - x), (0, 1))\\ 2x & = (1 - x)\\ x & = 1 / 3 \end{align*}\end{split}\]

Some code to check this:

>>> import nashpy as nash
>>> import numpy as np
>>> A = np.array([[2, 0],
...               [0, 1]])
>>> rps = nash.Game(A, A.T)
>>> list(rps.support_enumeration())
[(array([1., 0.]), array([1., 0.])), (array([0., 1.]), array([0., 1.])), (array([0.333..., 0.666...]), array([0.333..., 0.666...]))]

The first two pure NEs immediately obey the first condition of the theorem from the notes.

Ask students to verify this.

Then ask students to check the condition for the final NE:

Let us consider the conditions for the final NE:

\[\begin{split}\begin{align*} u((1/3, 2/3), (1/3, 2/3)) &= 2/3\\ u((y,(1-y)), (1/3, 2/3)) &= 2y/3+(1-y)2/3=2/3\\ u((1/3, 2/3), (y, (1-y)) &= 2y/3+(1-y)2/3=2/3\\ u((y,1-y), (y, (1-y)) &= 2y^2+(1-y)^2\\ \end{align*}\end{split}\]

We see that the final condition needs to be checked, \((1/3, 2/3)\) is an ESS iff \(u((1/3, 2/3), (y, 1-y))>u((y, 1-y), (y, 1-y))\).

\[\begin{split}\begin{align*} u((1/3, 2/3), (y, 1-y)) - u(y,1-y) &= 2/3-2y^2-1+2y-y^2\\ &=-3y^2+2y-1/3 &=-1/3(9y^2-6y+1) &=-1/3(3y-1)^2 &<0 \end{align*}\end{split}\]

Thus \(u((1/3, 2/3), (y, 1-y))<u(y,1-y)\). Thus this is not an ESS.

Some code to verify this:

>>> from scipy.integrate import odeint
>>> import numpy as np
>>> import matplotlib.pyplot as plt
>>> t = np.linspace(0, 4, 100)  # Obtain 100 time points
>>> def dx(x, t, A):
...     """
...     Define the derivate of x.
...     """
...     f = np.dot(A, x)
...     phi = np.dot(f, x)
...     return x * (f - phi)
>>> A = np.array([[2, 0], [0, 1]])
>>> np.random.seed(0)
>>> plt.figure()
>>> for epsilon in np.random.random(20):
...     xs = odeint(func=dx, y0=[1 - epsilon, epsilon], t=t, args=(A,))
...     plt.plot(xs)
>>> plt.ylim(0,1);
...