The Evolution of Entrepreneurial Activity: A Game-Theoretic Perspective

Empirical evidence has indicated that national entrepreneurial activity exhibits a degree of temporal stability. This study employs an evolutionary game-theoretic framework to investigate this phenomenon. By constructing game models that encapsulate the fundamental dynamics of entrepreneurship, researchers have derived the conditions necessary for the emergence of an evolutionary steady-state equilibrium. This equilibrium is characterized by a heterogeneous population, encompassing both agents engaged and disengaged in entrepreneurial pursuits. Notably, analysis has demonstrated that entrepreneurship can persist without reliance on strategic complementarities or group selection mechanisms. Furthermore, researchers have elucidated how the wage-to-self-employment equilibrium provides insights into the enduring debate regarding the distinct characteristics of entrepreneurs relative to other economic agents.