Theoretical Economics 11 (2016), 89–131
Dynamics in stochastic evolutionary models
David K. Levine, Salvatore Modica
We characterize transitions between stochastically stable states and relative ergodic probabilities in the theory of the evolution of conventions. We give an application to the fall of hegemonies in the evolutionary theory of institutions and conflict and illustrate the theory with the fall of the Qing Dynasty and rise of Communism in China.
Keywords: Evolution, conventions,markov chains,state power
JEL classification: C73
Full Text: PRINT VIEW Supplementary appendix