Evolutionarily Stable Strategy (ESS)
A strategy that, if adopted by a population, cannot be invaded by any alternative strategy, often used in evolutionary game theory.
Implications
A strategy in game theory that, if adopted by a population, cannot be invaded by any alternative strategy because it provides a higher or equal fitness level, often used in evolutionary biology and economics to explain the persistence of certain behaviors or strategies.
Example
Example: In a market with two competing firms, an ESS might be a pricing strategy that, if both firms adopt it, neither has an incentive to change because any deviation would lead to lower profits.
Related Terms
Different from a simple equilibrium, where strategies are balanced, an ESS is particularly resilient to change, meaning it is stable even if others adopt different strategies.
Get INSTANT comprehensive market research of any industry
Chat with AII Consultant Now!
