This paper analyzes the cultural evolution of firms and workers. Following an imitation rule, each firm and worker decides whether to be innovative (or not) and skilled (or unskilled). We apply evolutionary game theory to find the system of replicator dynamics, and characterize the low-level and...

One can restructure institutions, but if individual-level motivations for corrupt behavior are not understood, these restructuring may not be effective. We introduce an evolutionary-game modeling to deal with the problem of corruption driven by imitative behavior.