A population explosion in an evolutionary game in spatial economics: Blow up radial solutions to the initial value problem for the replicator equation whose growth rate is determined by the continuous Dixit–Stiglitz–Krugman model in an urban setting

We consider a spatially continuous evolutionary game whose payoff is defined as the density of real wages that is determined by the continuous Dixit–Stiglitz–Krugman model in an urban setting. This evolutionary game is expressed by the initial value problem for the replicator equation whose growth r...

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Bibliographic Details
Published inNonlinear analysis: real world applications Vol. 23; pp. 26 - 46
Main Authors Tabata, Minoru, Eshima, Nobuoki
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.06.2015
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Summary:We consider a spatially continuous evolutionary game whose payoff is defined as the density of real wages that is determined by the continuous Dixit–Stiglitz–Krugman model in an urban setting. This evolutionary game is expressed by the initial value problem for the replicator equation whose growth rate contains an operator which acts on an unknown function that denotes the density of workers. We prove that this initial value problem has a unique global solution, and that if workers are distributed radially in space and concentrated in the neighborhood of a city at the initial time, then all workers will move toward the center of the city in such a way that the density of workers converges to the Dirac delta function in the sense of distribution. In the real world this result describes a population explosion caused by concentration of workers motivated by the disparity in real wages.
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ISSN:1468-1218
1878-5719
DOI:10.1016/j.nonrwa.2014.11.004