Main Article Content
We present a novel mathematical model of development and progression of investments based on evolutionary game theory. Four different investment types in market: bank account, bond, stocks, and risky derivatives. Despite the relative sincerity of the model, it supplies a way to explore the interactions between the different investment types in the market. We assume the market is a complete and four assets constitute the total capital market. And assume that the three risk-averse individual, risk- neutral individual and risk-seeking individual enter the market and each individual buys at least two assets. We examine the interaction of the two assets and find evolutionary stable strategy in interactions and weights. We explore the heard effect on decision making and investment.