Evolutionarily Stable Strategies in Sports Contests
Published online on January 03, 2013
Abstract
Most articles on sports economics presume the well-known Nash equilibrium concept. In this article, however, we apply evolutionary game theory in a sports-contest model. If clubs follow evolutionarily stable strategies (ESS), then ESS generate greater investments and smaller profits than predicted by Nash’s strategies, independent of whether a club is win-maximizing or profit-maximizing. Overdissipation of the rent is possible for Nash strategies and for ESS.