The paper shows that there is a close connection between (constant) consistent conjectures in a given game and evolutionary stability of conjectures. Evolutionarily stable conjectures are consistent and consistent conjectures are the only interior candidates for evolutionary stability.

The paper compares two models of evolution in symmetric two-player games with incomplete information. One model postulates that the type of a player is fixed, and evolution works within types. In the other model type-contingent strategies evolve. In the case of two types and two strategies it is...

We revisit the question of price formation in general equilibrium theory. We explore whether evolutionary forces lead to Walrasian equilibrium in the context of a market game, introduced by Shubik (1972). Market games have Pareto inferior (strict) Nash equilibria, in which some, and possibly...