infonet-economy

hort-run equilibrium of supply and demand. Assets pay dividends that are partially consumed and partially
reinvested. The traders use fixed-mix investment strategies (portfolio rules), distributing their wealth between
assets in fixed proportions. Our main goal is to identify globally evolutionarily stable strategies, allowing an
investor to “survive,” i.e., to accumulate in the long run a positive share of market wealth, regardless of the
initial state of the market. It is shown that there is a unique portfolio rule with this property—an analogue
of the famous Kelly rule of “betting your beliefs.” A game theoretic interpretation of this result is given.