Partial differential equation modelling for stochastic fixed strategy distributed systems

Fixed strategy models, in which agents are endowed with a behavioral strategy as a primitive of the economy, are widely used in distributed systems where interaction is governed by local effects. We introduce a methodology for analyzing such models using partial differential equation systems. This m...

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Bibliographic Details
Published inJournal of economic dynamics & control Vol. 29; no. 1; pp. 335 - 367
Main Authors Dorofeenko, Victor, Shorish, Jamsheed
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 2005
Elsevier
Elsevier Sequoia S.A
SeriesJournal of Economic Dynamics and Control
Subjects
Distributed system
Economic dynamics
Economic models
Economic theory
Fixed strategy
Fokker–Plank
Methodology
Partial differential equations
Prisoner's dilemma
Simulation
Studies
Prisoner's dilemma
Distributed system
Fokker–Plank
C73
C61
Fixed strategy
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Summary:Fixed strategy models, in which agents are endowed with a behavioral strategy as a primitive of the economy, are widely used in distributed systems where interaction is governed by local effects. We introduce a methodology for analyzing such models using partial differential equation systems. This method is developed in detail and applied to an extended economic example, the demographic prisoner's dilemma. We show using this methodology that both analytical and numerical results may be obtained for the long-run dynamics of the stochastic system. The method thus complements existing simulation techniques for analyzing the long-run behavior of stochastic fixed strategy distributed systems.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0165-1889
1879-1743
DOI:10.1016/j.jedc.2003.07.004