Technology choice between the principal and the agent in an evolutionary context

Abstract

This paper discusses the necessary conditions for principal and agent contract in an evolutionary interactive context and how a specific technology prevails. The resulting stability condition is an Evolutionarily Stable Strategy, ESS, in the Maynard Smith tradition. When productivity is greater or equal to one arises a ESS in a particular technology and when productivity is less than one the only way to explain why a particular technology prevails is by means of a convention.