To view PDF files, please download Acrobat Reader . It is argued that the profitability of each mode depends on the distribution of firms across modes and on the general economic environment. The evolutionary equilibria in both a parametric and a general model is characterized, and it is argued that corner equilibria predominate. The most striking conclusion is that in the second case a less efficient mode can displace a more efficient mode when trade barriers are sufficiently low.
Evolutionary games have considerable unrealized potential for modeling substantive economic issues.
They promise richer predictions than orthodox game models but often require more extensive specifications. This paper exposits the specification of evolutionary game models and classifies the possible asymptotic behavior for one and two dimensional models. Sometimes people make decisions that seem inconsistent with rational choice theory. When such decisions are systematic and well documented, one has a choice anomaly. By now the empirical literature offers dozens of interrelated anomalies documented in hundreds of articles and surveys.